Thu Apr 03 14:32:40 UTC 2025: ## Trump’s 26% Tariff on Indian Goods Sparks Economic Concerns

**New Delhi, April 4, 2025** – The imposition of a 26% reciprocal tariff by the United States on all Indian goods has triggered widespread concern among Indian economists and politicians. Aam Aadmi Party (AAP) MP Raghav Chadha claims he warned of this outcome months ago.

Chadha, citing a February 11th Rajya Sabha speech, highlighted the potential economic devastation resulting from the tariffs. He predicted significant negative impacts across various sectors, including electronics, gems and jewelry, textiles, and automobiles. The US trade deficit with India stands at $46 billion, making India a key target for these measures. While auto parts and aluminum are exempt from the 26% tariff, they remain subject to a previously announced 25% levy.

Chadha detailed the potential consequences in his earlier parliamentary address. He explained how increased costs would make Indian goods less competitive in the US market compared to those from countries like Vietnam, Bangladesh, and the Philippines, leading to factory closures and job losses. He projected the loss of millions of jobs, particularly impacting textile hubs in Ludhiana, Tamil Nadu, and Gujarat. The IT sector, with 80% of its exports destined for the US, is also expected to suffer heavily.

While the US administration has reportedly exempted the Indian pharmaceutical sector from the tariffs, Chadha expressed concern about the impact on the industry, given India’s substantial role as a supplier of affordable medicines globally.

Chadha further criticized the Indian government’s perceived subservience to the US, citing examples such as reduced oil imports from Iran and increased purchases of US defense equipment. He also alleged that certain individuals in India actively supported Trump’s re-election campaign, yet the outcome has resulted in the deportation of numerous Indian immigrants under harsh conditions. The MP concludes that the new tariffs represent a significant blow to the Indian economy and workforce.

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