WSJ What’s News What Trump’s India Tariffs Mean for Global Trade
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Aug 27, 2025 Steep U.S. tariffs on Indian goods are set to impact major sectors like apparel and shrimp farming, creating ripples in global trade. President Trump’s upcoming Fed Governor nominee could reshape trade policies. Meanwhile, despite subsidy rollbacks, the renewable energy industry shows resilience and potential for growth. As electricity demand rises, driven by AI advancements, discussions on energy solutions are more crucial than ever, alongside exciting developments in the space sector.
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Major Hit To India's Labor-Intensive Exports
- The new combined 50% US tariff will hit labor-intensive Indian exports like apparel, shrimp, diamonds, shoes and carpets.
- One analysis says two-thirds of India's $90B exports to the US fall under the levy, risking a $30–40B drop in exports.
Trade Talks Derailed By Political Friction
- Talks between the US and India faltered despite earlier momentum toward a deal.
- Non-trade issues, like disagreements over India-Pakistan ceasefire claims, likely soured relations and complicated negotiations.
China‑Plus‑One Calculus Shifts
- Tariffs change the calculus of the China-plus-one strategy; small margin shifts can halt relocation plans.
- Countries like Bangladesh and Vietnam remain competitive for apparel at about a 20% advantage over India now.