From spices to basmati rice…these 20 things will become expensive due to Trump’s tariff war, how much impact will it have on the economy?
US Tariff Hike Impact: In the year 2024, a total trade of $129.2 billion took place between India and America, out of which exports from India to America were $87.4 billion and exports from America to India were $41.8 billion.
Trump Tariff War Effect: There is a strong business relationship between America and India. America is India’s second largest trading partner. In the year 2024, a total trade of $129.2 billion took place between India and America, out of which exports from India to America were $87.4 billion and exports from America to India were $41.8 billion, but after Donald Trump came to power, America has started harping on tariffs. America first imposed tariffs on Canada, Mexico, then China, and now it has announced to impose reciprocal tariffs on India from April 2. However, its effect will not only be on India but also on America.
Inflation will increase
America has announced to impose reciprocal tariff on all the countries of the world including India. Reciprocal tariff can also harm India, but America itself will also bear the brunt of it. The prices of many products exported from India to America can increase. This tariff will not only affect the Indian businessmen exporting to America, but American consumers will also be shocked. The cost of companies will increase due to the increase in tariff, which they will compensate by increasing the price. If the price increases, the American people will have to bear the brunt of inflation.
These things going from India will become expensive
The things that India sends to America include makhana, frozen shrimp, spices, basmati rice, cashews, fruits and vegetables, oil, sweetener, processed sugar, confections, fruits, nuts, and vegetables, feed grains, petroleum, raw diamonds, liquid natural gas, gold, coal, waste, almonds, defense products, engineering goods, electronic goods, medicine and pharmaceuticals etc. If America increases tariffs on these goods, then these things will become expensive for the people of America. America is a big buyer of Basmati rice. Its price will increase in America due to the increase in tariffs, however, it will also affect India’s exports.
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Effect on the economy
Apart from this, due to the increase in tariffs, Indian jewellery brands will find it difficult to compete in America. Indian sarees and kurtas, which are in great demand in America, but their prices may increase due to the increase in tariffs. It will become expensive for Indian companies to do business in America. There will be an impact on the trade between India and America. Due to the increase in tariffs, many major export products of India will become expensive, due to which India’s trade deficit will increase. Its effect can be seen on India’s economy.