US Tariff On India: In Ahmedabad on August 25, Prime Minister Narendra Modi delivered a strong message of determination against growing trade tensions with the United States. With a 50% tariff on Indian exports expected to take effect, the Prime Minister stated, “No matter how much pressure comes, we will keep strengthening ourselves to withstand it,” highlighting India’s capacity to adapt and safeguard its economic interests.
Impact on Trade and Economy
The U.S. tariffs are expected to affect nearly $48 billion worth of Indian exports, covering sectors like textiles, gems, jewellery, and leather goods. One of the worst-hit industries is the diamond sector in Surat, where export orders have already stalled. The slowdown has led to widespread concern, with job losses mounting and local economies under stress. Analysts warn that the scale of disruption could ripple across multiple industries, particularly those dependent on overseas demand.
Strategic Responses Underway
To mitigate the impact, the Prime Minister’s Office (PMO) has been holding high-level meetings to chart out support measures for vulnerable sectors. Efforts include exploring diplomatic negotiations, bolstering domestic consumption, and implementing relief packages to protect jobs and small enterprises. The government is also strengthening its global trade strategy to ensure India remains a resilient player in the world economy.
Political and Domestic Reactions
Within India, the government and ruling party have emphasized the strength of the domestic market as a shield against international shocks. Modi reiterated that farmers, small entrepreneurs, and cattle rearers will not be left behind and assured that targeted support systems are being put in place to cushion the impact.