International

US Sends Notice Ahead of 50% Tariff on Indian Goods

The U.S. Department of Homeland Security has issued a formal notice to India, confirming that an additional 25% tariff will be applied on Indian goods starting 12:01 a.m. EDT on August 27. This will raise total tariffs on certain imports to 50%, impacting items entering the U.S. market or withdrawn from bonded warehouses from that date.

Economic Fallout Expected

Indian stock markets reacted sharply to the announcement, with indices like the Nifty and Sensex opening lower amid concerns over trade disruptions. Exporters in sectors such as textiles, diamonds, and seafood have accelerated shipments ahead of the deadline to avoid the higher duties. The Indian rupee is also expected to face pressure due to increased dollar demand as trade costs rise.

Political Response

Prime Minister Narendra Modi, addressing a gathering in Ahmedabad, urged citizens to stay united and resilient. He assured that the government would stand firmly with small traders, farmers, and entrepreneurs affected by the tariff hike. Modi reiterated India’s determination to face external economic challenges without compromising national interests.

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