The US has announced to implement 50% tariff on Indian goods, which is creating a new tension in Indo-US trade relations. The tariff, which has been planted in response to oil imports from Russia in India, will affect India’s export of $ 87 billion, including textiles, gems and jewelery, and chemical products.

Eminent economist and professor Amir Ullah Khan termed the move as an ‘economic pressure strategy’, which challenges India’s economic sovereignty. Pro. According to Khan, this tariff can have a negative impact of 0.2–0.4% on India’s GDP growth, especially on small and medium enterprises (MSMES), which are active in labor-dominated areas such as textiles and leather.

‘Make in India’ campaign weakened

He said, ‘This step can weaken India’s’ Make in India ‘campaign, as the competitiveness of Indian products in the US market will decrease by 30-35%.’ However, areas such as pharmaceuticals and electronics have been exempted, which has provided some relief.

Pro. Khan said that India has the option to take many strategic steps to reduce this tariff. First of all, India should raise this issue in the World Trade Organization (WTO), as this tariff can be a violation of global trade rules. Second, India should pay attention to Europe, Gulf countries and alternative markets like Africa. Third, the government can implement assistance measures such as interest subsidy and export loan guarantee for MSMEs.

Need to strengthen business strategy

Commenting on India’s situation compared to China, Prof. Khan said that America avoids pressurizing it due to China’s economy and its important role in the global supply chain. Although India is an emerging power, there is a need to further strengthen its business strategy.

He suggested that India should take advantage of BRICS and regional trade agreements and strengthen its position. Prof. in the end. Khan insisted that India should give calm and strategic reactions, so that long -term economic interests can be protected.

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