Semiconductors Spared: Navigating the US-India Tariff Turmoil

The US excluded semiconductors from its new tariffs, acknowledging their key role in supply chains. However, India's exports face challenges, as a 27% tariff impacts trade relationships. While the tariff strategy supports US manufacturing, it risks global trade disruptions. India must adapt rapidly to remain a competitive force.

The US has exempted semiconductors from its recent tariff impositions, acknowledging their critical function in global supply chains. Despite this concession, India's export landscape faces challenges due to a 27% tariff that alters trade dynamics with its largest partner, the United States.

India Electronics and Semiconductor Association (IESA) President Ashok Chandak highlighted that the rapid implementation of these tariffs could hamper global growth and induce market instability. Although India is better positioned, there is potential for negative impacts on domestic industries and global trade frameworks.

As trade relations remain fraught, India needs to quickly strategize through diplomatic efforts and policy adjustments to guard its trade interests. Meanwhile, semiconductor and pharmaceutical sectors remain exempt from tariffs, ensuring their stable contributions to the global market.

(With inputs from agencies.)