Trump -rates shock in: Who will suffer the most and which sectors take the hit? Details here

US President Donald Trump announced an additional 25% rate on India, which brought the total rates to 50%. These rates kick in today, August 27. The additional 25% tariff comes as a penalty for India’s continued purchase of Russian oil, Donald Trump said. During the announcement on August 6, Trump said that only China, India and Turkey were hit with such “punishment”. Since the rates have come into effect today, here is a glimpse into its possible impact – ‘even if the export of India after the US amount is on a modest 2.3% of GDP, the sectoral impact of the second 25% tariff that kicks in on Wednesday will be asymmetrical,’ said Radhikha Rao, a senior economy at DBS Bank. Apparel industry According to data by the Global Trade Research Initiative, labor-intensive sectors such as textiles, jewelery and jewelry, leather goods, food and cars will be hit hardest with the Trump rates. For the clothing industry, the revenue growth of the domestic Readymade Garment (RMG) turnover is expected to delay this financial year to 3-5%, after the introduction of a 50% duty on India’s export to its economy. However, rates will hit more businesses, especially those that produce more than 40% of their US revenue, Mint reported on August 26. “The US tariff announcement of August 6 is a major setback for the textile and clothing exporters of India, as it has further complicated the challenging situation we can already weaken with a large part of the US marketing. The Indian textile industry (Citi) told Pti. tariff announcement, which is an indication of more than 1 lakh job losses. These products may no longer be accepted or sold, “Rajesh Kokde, chairman of the All India Gem and Jewelery Domestic Council, told Ani.” Previously, when there was a 10 percent tariff, about 50 thousand people were believed to be unemployed. If the same pattern follows with the new tariff increase, more than one Lakh people could be affected this time. Such a rash would be very sorry for the jewelry industry, “Kokde said. Meanwhile, amid Trump rates and poor Chinese demand, the Surat Diamond Bourse is experiencing a low-decade low in export demand. Some exporters even consider moving to countries with lower tariffs like Botswana. Megaa Moda, a Kolkata-based seafood exporter told PTI. Indian shrimp already attracts a 2.49 percent counter -reinforcement and a 5.77 percent counteracted. After this 25 percent, the duty will be 33.26 percent from August 7, “Gupta said. Products with high duties mats (52.9%) organic chemicals (54%) clothing, knit (63.9%), clothing-woven (60.3%), textiles, made up (59%), diamonds, gold and products (52.1%), machinery and products (52.1 (51.3%) exports will suffer according to estestates, the rates could affect $ 48.2 billion. Managing Director, Kama jewelry told PTI. For a large number of MSME-led sectors, the absorbing of this sudden escalation of the cost is simply not viable. Margins are already thin, and this additional blow can force exporters to lose long -standing customers, “Shah added. Who’s likely to pay the price? Recently, an Instagram user, Mercedes Chandler, shared a video of a Walmart store in the United States, claiming that President Donald Trump’s rates are directly rising and other items. Effect, ‘said Chandler and indicated how these duties increased the costs for customers in the US. 6.98, and a backpack previously sold for $ 19.97, now at $ 24.97. ”(With input of agencies.)