Kathmandu. US President Donald Trump has imposed a 50% tax on India. This includes a 25% penalty for buying oil from Russia.
According to Jeffreys economist Chris Wood, Trump’s tariffs could cost the Indian economy around $55-60 billion. Wood is Jeffridge’s head of global equity strategy.
Wood made this claim in his weekly report ‘Grid and Fear’. According to the report, sectors such as clothing, shoes, jewelry and gems and jewellery will be the most affected. These are the areas in which many people are employed.
Wood believes Trump took the step because he could not play a role in resolving the four-day military conflict between India and Pakistan in May. India has always been against third-party interference in its affairs with Pakistan. Trump did not get a chance to win the Nobel Peace Prize. However, it will cause economic damage to India. This heavy tariff has been imposed in India at a time when both countries were close to finalising a trade deal.
Wood also said that no Indian government will open agriculture for imports. The reason for this is that it will have a very bad effect on the poor. About 250 million farmers and their associated labourers earn their livelihood from agriculture. This sector employs about 40% of India’s population.
Trump has so far not focused on India’s services sector. India earns $150 billion annually from this sector. IT services have a major contribution to this.
Apart from this, many American companies have set up global capacity centers in India. Which makes 60 billion dollars. “When Trump talks about business, he focuses almost entirely on the goods trade,” Wood said. This tariff dispute could also bring India closer to China. ’
According to Wood, India needs cheap goods from China. “It’s very strange that there is no clarity on U.S. foreign policy. This is not in america’s interest as it is pushing India closer to China. ’
