India is trying to overcome the colossal customs duties imposed by Donald Trump. While the president brought 50% this week, some companies plan to develop their production in Africa, in countries less attacked by the White House.
Gokaldas exports, a supplier of the Gap Clothing brand, and Raymond Lifestyle, a high -rotation textile manufacturer, are among these companies according to Bloomberg.
As in most African countries, products manufactured in Kenya and Ethiopia are only affected by customs duties of 10% when entering the United States. Therefore, they could do well, while the large countries of textile production in Asia will be taxed at higher rates.
Bloomberg specifies that Indian exporters of diamonds and jewels also look at the African continent, where certain countries such as Ethiopia, Nigeria or Morocco offer tax exemptions of the companies established in their soil.
Exports of sectors with high work intensity, such as jewelry and clothing, could decrease to 90% according to a Bloomberg study, while the United States is the main market for Indian companies.
American inflection
Donald Trump broke with decades of approach with India by imposing a customs surcharge of 50%. The US president accuses New Delhi, through his purchases of Russian oil, to finance the war fought by Moscow in Ukraine.
Peter Navarro, White House commercial advisor, was even Wednesday to qualify the conflict as “War Modi”, called by the Indian Prime Minister.
At the same time, Narendra Modi will go to China this weekend this weekend, for a meeting with Xi Jinping in which the two leaders should try to build a consensus on many issues.
Source: BFM TV
