Former G20 Sherpa and ex-Niti Aayog CEO Amitabh Kant has called the steep hike in US tariffs on Indian goods a “once in a generation opportunity” for India to push forward with long-pending economic reforms.Reacting to US President Donald Trump’s decision to double duties on a wide range of Indian exports to 50%, Kant posted on X, “Trump has provided us a once in a generation opportunity to take the next big leap on reforms. Crisis must be fully utilised.”As per ET, the revised tariff, which the Trump administration links to India’s continued oil trade with Russia, will take effect in two stages. A 25% levy announced on July 30 has been implemented on Thursday at 9:30 am, Which will be followed by an additional 25% duty 21 days later. Trump, in a post on Truth Social, said India remained a “friend” but criticised its trade barriers and energy ties with Moscow, stating, “They have the most strenuous and obnoxious non-monetary Trade Barriers of any Country… and are Russia’s largest buyer of energy, along with China.”The move follows an executive order titled “Addressing Threats to the US by the Government of the Russian Federation,” signed by Trump to penalise countries maintaining strong trade links with Russia. The order imposes an ad valorem duty in addition to existing tariffs. After the increase, India will face the highest tariff rate among its competitors in the US market—equal to Brazil at 50%. Others like Myanmar, Thailand, and China face significantly lower duties.Key Indian export sectors likely to be impacted include textiles, gems and jewellery, shrimps, leather, steel, copper, aluminium, and machinery. While vehicles will be taxed at 26%, petroleum products will attract a 6.9% duty. Pharmaceuticals, critical minerals, crude oil, refined fuels, and semiconductors are among the exempted categories.The move could severely hit Indian exporters. According to the Federation of Indian Export Organisations (FIEO), the new tariffs will impact nearly 55% of India’s exports to the US. “It is extremely shocking,” said FIEO DG Ajay Sahai, as quoted by PTI.The tariff hike also comes ahead of the sixth round of negotiations for the India-US Bilateral Trade Agreement (BTA), scheduled to begin on August 25. The US is pressing India for concessions on goods like EVs, wines, dairy items, and genetically modified crops. In 2024-25, bilateral trade stood at $131.8 billion, with Indian exports valued at $86.5 billion.
