The influential Federation of Indian Export Organizations (FIEO) warned on Tuesday, August 26 that the draconian customs tasks imposed by Washington in India could seriously “impact” exports to the United States, less than twenty -four hours before the entry into the force of new customs taxes that caused 50%. The president of the United States, Donald Trump, said this month before his administration would increase customs duties in Indian products, from 25% to 50%, from August 27, to sanction the purchase of Russian oil by New Delhi, which according to Washington helps Moscow to finance its war against Ukraine.
The new customs tasks are expected to enter into force on Wednesday morning in India, unless the last minute change of President Trump. The FIEO said Tuesday that the increase in customs tasks would affect approximately 55% of Indian exports to the United States and would make them “non -competitive” compared to goods from countries such as Vietnam, the Philippines and China. The president of the FIEO speaks of a “reverse” and fears “serious repercussions.”
Strong disturbances
According to this organization, the main textile manufacturers in India have already stopped producing, while seafood exporters face “supply chain disturbances” and the “dismay” of producers in the sector. The FIEO added that command orders also weighed a lot in the employer sectors of an important workforce, such as leather, chemistry and crafts.
Although the power of India is not based exclusively on its manufacturing industry, economists estimate that if US customs duties of 50% are maintained, Indian growth could be under the threshold of 6% this year, a level below the 6.5% prognosis of the Indian Central Bank. Indian actions fell on Tuesday before the probable application of the new tasks of US customs. The ingenious reference index has closed just over 1%.
Source: BFM TV
