Trump tariffs: Indians will face the consequences

A fresh trade war may be brewing and Indiarsquos middle class could soon feel the heat Starting today the US has imposed a 25 per cent tariff on a range of Indian exports The decision announced by US President Donald Trump in trademark nononsense style is being seen as a bold political move with real economic consequences for businesses and everyday Indian householdsCause and common manThe US says India has been playing tough The country is keeping high import duties creating complex rules for foreign businesses and cosying up to Russia As a result Trump has imposed penalty tariffs on several key Indian goods heading to the US Some of these are Pharmaceuticals textiles and garments jewellery and diamonds auto parts machinery and organic chemicalsThe common man might not be exporting cars or diamonds yet there will be a trickledown effectgtgt Jobs at risk If US buyers cut orders due to costlier imports Indian factories may slow production That means potential job cuts or reduced shifts especially in hubs like Tirupur textiles Surat gems Pune auto parts and Baddi pharmagtgt Prices may go up India may hit back with its own tariffs If that happens American goods here could become more expensive Think imported snacks gadgets supplements and even some learning tools your kids use A college student buying a new iPad or a fitnessconscious parent ordering multivitamins may soon feel the pinchgtgt Effect on medicine availability Indiarsquos pharma exports to the US are huge If margins drop companies might reduce production or focus elsewhere That could impact domestic medicine prices especially generic ones used by middleincome familiesgtgt Fuel grocery bills may rise Less dollar income from exports equates to a weaker rupee A weaker rupee translates to costlier imports like oil gas and cooking ingredients In laymanrsquos terms your monthly petrol bill or edible oil price might quietly creep upgtgt Effect on small vendors Many small businesses work indirectly with exporters making zippers packaging boxes chemicals or transport services could be impacted As orders shrink their incomes could drop tooNot just businessThis isnrsquot just about business Trumprsquos move is also a strategic message to India over its growing role in BRICS efforts to reduce reliance on the US dollar and continued trade with Russia which others have reducedStay the courseIndiarsquos global posture has always been rooted in strategic autonomy mdash importing discounted Russian oil defending tariff sovereignty and engaging with BRICS and other South Asian platforms While this enhances independence it also brings diplomatic and trade friction with the West If India does decide to change its stance the same would affect industries drastically and make it more expensive for the common man fuel prices among others will be higher and India will not be able to compete with international productsLast wordsLike the recent India vs England Test draw this tariff situation might not end in a clear winner but everyone will feel the bruises And in this match the scoreboard isnrsquot just about exports itrsquos about household budgets small vendors and salaried lives The 2025 foreign policy isnrsquot just about diplomats shaking hands Itrsquos about you standing in line at the petrol pump wondering why mustard oil costs Rs 40 more While India is currently certainly not singing lsquotariff karoon kya uski jisne ise lagaayarsquo the full impact of these tariffs will unfold over weeks not dayslsquoMake more in IndiarsquoThe imposition of a 25 per cent tariff by the US on Indian goods underlines the urgency for Indiarsquos electronics sector to diversify export markets deepen domestic markets develop Indian brands and products and move up the value chain to reduce dependency on pricesensitive tariffexposed exportsAs India does not make many semiconductors it wonrsquot be affected in the short term We hope that the ongoing final trade negotiations will create some positive outcome in the next few weeks or months as both countries may want to find a good balanceAshok Chandak president India Electronics amp Semiconductors Association IESAWhat gets costlierIndia being a developing country has charged higher tariffsAverage tariff 17637 In contrasthellipChina 7537US 3437EU 5137 High duties exist onhellipCars Up to 10037Alcohol Over 15037Electronics 152537These tariffs protect domestic industry but have become a thorn in international trade negotiations and a key reason for Trumprsquos punitive action