Trump's 27% instead of 26% tariff may push India's textile, semiconductor industry to surpass Asian peers: GTRI

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GTRI's Ajay Srivastava said the United States has imposed higher tariffs on China, Vietnam, Thailand and Bangladesh, creating opportunities for India in global trade. India has tariffs of 25 per cent on steel and cars and 27 per cent on most goods, but there are no tariffs on pharmaceuticals and semiconductors. Lower tariffs have improved India's competitiveness in textiles, electronics and semiconductors, attracting investment.

Ajay Srivastava, founder of GTRI, said US President Donald Trump's imposition of higher tariffs on several Asian and European countries, including China, Vietnam, Taiwan, Thailand and Bangladesh, provided a strategic opportunity for India to strengthen its position in global trade and manufacturing. Sri Vas

tawa added that goods from India will face a 25% tariff, including steel, aluminum and car-related goods, while pharmaceuticals, semiconductors, copper or energy products are exempt from the tariffs.

For the remaining products, India will impose a reciprocal tariff of 27 per cent instead of the reported 26 per cent. Srivastava said the details of the notification stipulated that India would pay a tariff of 27 percent.

He said: "India's steel, aluminum and car-related products will face a 25% tariff, while pharmaceuticals, semiconductors, copper or energy products will not be subject to tariffs. For the remaining products, India will pay a reciprocal tariff of 27%." He stressed

while India faces a 27 per cent tariff, the US has set higher reciprocal tariff rates on goods from other countries, including 54 per cent for China, 46 per cent for Vietnam, 37 per cent for Bangladesh and 36 per cent for Thailand. Tariffs on Indian goods are relatively low, giving India a competitive advantage in a number of areas.

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