India’s electronics industry is currently relieved by two weeks from the proposed tariff to be installed by the US. This information has been given by sources associated with government and industry. This relief has been received because an important section (Section 232) is yet to be reviewed, which is part of the ongoing bilateral talks between India and the US.
Trump announced 25 percent tariff yesterday
US President Donald Trump announced on Wednesday that 25 percent tax (tariff) would be imposed on all goods coming from India from August 1. Apart from this, a separate fine will also be fixed by India for buying military equipment and crude oil from Russia, which has not been announced yet.
What is section 232?
Section 232 is a trade law of America, which allows special fees to be imposed on certain products in the name of national security. It also includes electronics and technical items. According to government sources, ‘Section 232 will be reviewed after two weeks. Earlier, when the US imposed 10% basic duty, technical products were given exemption due to this review. In the present situation, the same is expected, but what will happen after two weeks is difficult to say.
Trump’s tariff impact on industry, government’s strategy
India’s electronics industry has increased rapidly over the years, especially on mobile phones, laptops, semiconductors and IT hardware sectors, this tariff may have a direct impact. Experts believe that if these fees are applicable, it may weaken Indian companies to compete in the US. Products produced under ‘Make in India’ can cause damage in the international market. The government is taking this issue seriously and is trying to protect India’s interests in a conversation with the US. According to officials, all necessary steps will be taken keeping in mind the national interests.
Geo-political aspect of tariff
This tariff imposed by the US is not only a sign of political pressure, but also a sign of political pressure. America does not want India to buy defense equipment and oil from Russia. This penalty is a pressure technique under the same. India is now trying to balance between ‘strategic freedom’ and ‘international trade pressure’.
What can happen next?
There will be US review at section 232 within two weeks. If the exemption continues, India will get relief. If the fee is applicable, India will have to fight a diplomatic battle through the WTO or bilateral talks. Measures to increase new trade policies, export subsidies and local manufacturing.