US Tariffs Pose Challenges and Opportunities for Indian Export Sectors

The United States has introduced new tariffs impacting India's export sectors like shrimp, medical devices, and jewelry. However, some sectors, including apparel and electronics, may benefit from reduced competition. While tariffs challenge some industries, they create opportunities for others as global trade dynamics shift.

The introduction of new US tariffs is set to challenge several key Indian export sectors, including shrimp, carpets, medical devices, and gold jewelry, as they face a hefty 27% import duty starting April 9, according to an official statement.

Conversely, India's electronics, textiles, and pharmaceuticals sectors may find themselves at an advantage, as their competitors in other countries face even higher tariffs. The major shift in trade policy, announced by President Donald Trump, is part of an effort to reduce the US trade deficit and promote domestic manufacturing.

While sectors such as shrimp and jewelry grapple with the impact of heightened duties, the apparel industry anticipates potential gains due to India's integrated value chain and the higher tariffs imposed on rival exporters. With the United States being the largest market for Indian exports across multiple industries, the latest tariff changes present both challenges and opportunities for market players.

(With inputs from agencies.)