Public sentiment regarding US tariffs on India is a blend of cautious optimism, defiance, and calls for self-reliance. Many commenters believe that while US tariffs pose challenges, they could ultimately catalyze India's resilience and push for diversification in trade relationships, particularly with global powers like Russia and China. Concerns also exist about the government's responsiveness, especially concerning GST adjustments, with skepticism about long-term economic impacts on the middle class.

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While the 50% U.S. tariff hike is a serious blow to industries like gems, jewellery, and electronics, it might not cripple the entire Indian economy. If India can quickly adapt, by diversifying export markets and boosting domestic manufacturing, it could cushion the impact. That said, a move this sudden definitely creates a lot of uncertainty, and the government will need to act fast to avoid longer term damage :/

financefreakbyaks

I don't know, so far I have lost like 15% of my portfolio returns.

takshaksh

Baiyko

Export contribution to India GDP is not much, even if US put import ban GDP growth will slow by .5%

But risk is not on economically but geo politics will also play the role, US is notorious for creating civil war, protest, making govt unstable.

SanjuRai1986

Most media reports give a range of. 4 to. 8 basis point reduction in gdp growth. If the nominal growth for this fiscal was 6.5% then after tarrifs we can expect the growth to be between 5.8 to 6.1%.

So the impact will be there.

gunnvant

What happens when the most convenient kirana stores hikes it's commodity prices? Simple .. you find another one...it just takes time to explore the options...so be it... atleast our dependency is diversified.. which is ofcourse a good thing once the initial emotional burn out

inquisitivesouls

It's not about tariffs but quarter results, once companies start to give good results, market moves in positive/forward growth

Only_bliss_

The erstwhile great economy will suffer a lot. Medical which was already in bad shape would be the worst hit.

Natural_Skill218

u/SingleInSeattle87, your post does fit the subreddit! The community has voted.

qualityvote2

It may also impact the MD5 hash resulting in fluctuations in the poultry market.... If I understand correctly ..   
What the hell is input cost ?

who_oo

But the thing is Ind1an IT service sector is already slowing down for many other reasons. The largest Ind1an service sector IT company TCS just laid off 12,000 people . Instead, the rising sector, in Ind1a which is recruiting thousands of people in Ind1a are GCC . The global capability centers mostly run by US corporations directly. They are not impacted by any of this. Presently they are 1900 foreign companies operating in Ind1a . 24 of them have more than $1 billion revenue. This number was 12 five years back. They employ almost 2,000,000 people. According to Ind1an finance ministry, it will rise to 2.9 million in next five years . Most of them are high paying jobs. For example, Walmart technology center starting salary ₹16 lakh equivalent to 20 K USD fresh from college. Which is a great salary in Ind1a and attracts the top 5 percentile of Ind1an college grads. The same company recruits at 70K in its US headquarters. Survival salary . Even that place is flooded with H1b . Anyway, the point is the next wave of migration of good US jobs will not thru the Ind1an IT service sector. It will be by the US corporations setting up huge offices and branches in Ind1an cities and slowly migrating their operations, R&amp;D there. And there is no existing or proposed law on record to prevent this from happening. I have no idea how to respond to a post about India without mentioning the word, Ind1a. So I had to change it. Otherwise, it does not letting me post. I have attached a relevant link regarding GCC.

https://indianexpress.com/article/business/employment-gcc-india-fm-10126499/lite/

Hour-Beach-3053

I don’t believe this will strengthen China-India relations. At current climate, 25% does not look so terrible for India. The Indian economy relies heavily on domestic consumption and exports are more about tech service, so a 25% tariff on India differs from one on Korea, Taiwan, Germany, or Japan which exports automobiles and semiconductors.

However, if more measures are taken against India due to Russian oil or weapons, China will likely exploit India significantly and India will have some difficulty retaliating or coping with a situation. Also, how Trump sets tariff rates against China, Pakistan and Bangladesh will influence India's situation.

wsyang

Thats a poor article actually. Tariffs on China or India impact their exports to the US and thats all. For things to change, China would have to export more to India or the other way around… wont happen.

Politically China and India are at odds in the Himalayas and it wont change. China supports Indias ennemy, Pakistan…. So unless China change policy on these 2 topics, nothing will change between them.
But it might impact India - US relationships. Maybe make India closer to EU

vorko_76

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Aren't China and India having border wars with one another? How will they strengthen each other bonds?

UserLesser2004

Backfire from whose perspective?  Americans would love all the visa workers to go home.  It’s a dream come true.

Nofanta

The fact is Trump's tariffs are Making America Hated Again and strengthening ties everywhere against the US. 

sepata

What happened? Donny got mad because Indians are not getting pushed around?

Expert_Average958

Could? It's already happening, though it's broader than just the India tariffs.

All of the Trump's tariffs have done damage to America's standing in the world. Both the arbitrary and haphazard way they were decided on, and the utterly chaotic way they've been implemented, have destroyed te US's reputation as a reliable trading partner. Countries aren't even trying to make deals with such a partner, instead they're offering a few meaningless baubles which they know Trump will accept as he's an idiot. The EU e.g.

[Fossil Fool - How Europe took Trump for a ride](https://paulkrugman.substack.com/p/fossil-fool); Paul Krugman

In such a world countries will look elsewhere for reliable partners and meanigful trade deals. To other large trading blocks and economies, such as the EU, India and China. Investment will take place with and between these blocks, not with the US which will increasingly be shunned.

Skandling

China and India have a pretty major border dispute and relationships are sour. It goes beyond some tariffs.

China is currently building the largest dam ever conceived by mankind near Tibet, at a big river that goes from there into India and Bangladesh. That gives China a direct leverage once completed, as they can close the dam and greatly reduce the flow of water.

Misfiring

I know it sounds too good to be true, but just imagine a China India Russia axis. Not even for defence, more like an exclusive squad to push back against Western economic dominance. Yeah, BRICS is a thing, but if just these three came together? That alone could give Trump a mini meltdown.

Appropriate_Stage164

Here is my answer with experience. Our govt need to Lift all ban from Chinese apps etc. In past I work for ecommerce startup and we used do crores/millions worth sale from Tiktok. After I started my startup, I sold huge no of electronics on ClubFactory which had Zero fees for platform, my projection was to reach 1 cr/1o millions sale in year until, in covid our govt banned it. While I was getting screw on Amazon than Flipkart. Now they have monopoly on everything. Lets bring Chinese here on 50:50 partnership give them access to our economy in exchange of Money and Tech. Only then we can survive and have our own industry. We can handle Trump.

AHVANstartup

Asians and Middle easterns should form an alliance , we have been the victims of oppression from the west, this is not a time to fight among ourselves , leave religions , leave geographies , Be united under the same pain of the past funerals.

guilty_scorpio

No it won't. India and Pakistan hate each other. China loves Pakistan. China looks down on India. Indians see China as a threat to their existence.

There's no trust between the two countries. Quite the opposite in fact. They spy on each other like there is no tomorrow.

The only way it will mend is if India gives into Chinese demands and accepts the Chinese hegemony like all India's neighbors (Bhutan still pending).

dookie224

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No affect at all. They’ll just demand very favorable pricing from Rus and they’ll probably get it. Trump is an idiot at  so many levels its comical.

WhattaYaDoinDare

If trumps holds at 50% tariffs. It would wreck havock in some indian industries, those not covered by exemption. But a second blow could come by secondary sanction by the EU. Because from what i see, the european parlement seeks to do secondary sanctions also. But time will tell. Trade seems to change alot, with the second trump coming.

Moffload

You guys are talking about a trade value which is less than 2% of India’s GDP. They would prefer to keep the 98% of their economy running with cheap oil.

If the USA and EU start a trade war, past wounds of the British colonization will be resurfaced… it’s not a win for anyone. You can say goodbye to their markets. These wounds run deep, a generation that went through their independence struggles is either dead or dying, and this tariff drama will just rekindle their fear and loathing of the west with the current generations.

They’ve already said no to our defense equipment (or reduced drastically), and the F35 grounding in India last month was a demonstration of how even the British RAF had to get help to repair their own F35 plane. Not a good display of our air superiority which is monitored by us, and whose repair codes need to be unlocked remotely.

And if you have travelled the world extensively, you’ll find that no one wants our GMO agricultural products.

Heck, even I don’t want our hormone diet raised poultry and GMO corn. New Seasons, Sprouts, Whole Foods, Trader Joe’s are usually pretty good about sourcing organic stuff.

shantired

SS: India’s stock market showed little sign of panic a day after the U.S. announced a 50% tariff on goods from the country and threatened secondary sanctions over its continued oil trade with Russia.

The Sensex, the benchmark index for India’s blue-chip stocks, ended the day around 0.1% higher on Aug. 7.

From bureaucrats to businesses, there’s a broad consensus in India that the latest escalation from the U.S. is only a pressure tactic to fast-track trade talks. However, Indian Prime Minister Narendra Modi now has something he didn’t have, even a day earlier: the support of the Indian opposition to push back. 

Rahul Gandhi, the leader of India’s largest opposition party, the Indian National Congress, described the penalty for Russian oil purchases as “economic blackmail” by Trump.

Consequently, the Indian negotiators’ resolve may only get stronger, especially in talks over areas that directly affect the country’s farmers.

“India will never compromise on the interests of the country’s farmers, fishermen, and livestock breeders. I know it will cost me personally, but I am ready,” Modi said on Thursday morning, hours after the U.S. increased tariffs.

Mundane-Laugh8562

India has cancelled or at least put on hold the $ 3.8 billion order for 6 additional P-8I maritime patrol aircrafts. This single deal alone is roughly equivalent to 10% of the \~ $ 40 billion annual Indian exports hit by the tariffs.

India's three largest airlines have total of 410 Boeing airplanes on order which have value of $ 70 billion. This in total is the total annual Indian export to USA.

In addition, there is the Stryker deal, the Javelin deal etc. which now will likely not go through.

Sumeru88

India doesn't sell goods to the US, it sells services, services don't have tariffs, Trump's tariff scare tactic won't work on India for this single reason, tariffs might as well be 250% or 1000%, it won't have the same result on India as it would have on countries like Canada or Mexico.

lic2smart

Exports to the US is about 18% of India's total exports, but only makes up a bit over 1% of its GDP. These tariffs will not work. The damage is done anyway, decades of India-US relations tossed in weeks.

HarshilBhattDaBomb

Having seen the China playbook, India hopes the tariffs will go away or put in abeyance until the next round of talks are concluded. The team is arriving in India August 25th- India has supposedly agreed to lower tariffs on most but not on 2 particular categories, Agriculture and Dairy. 

Agriculture and Dairy are the 2 biggest redlines - still a very farming driven economy it needs to safeguard its large farmer base. Unlike the US where farming happens by corporations, India has a much more fragmented system. India is pushing back strongly against the use of GMO crops and the use of dairy where blood meal is involved (majority of Hindus are vegetarians).

hinterstoisser

Is anyone else getting the impression that Trump is acting like an oblivious teenager among adults—thinking everything will return to normal once the trade deal is signed?

Trade comes after national security and strategic interests. What started as a casual tug-of-war has now escalated into a serious confrontation, and Trump doesn’t appear mature enough to grasp that—let alone start working to fix things.

Just with the events of the past week or so, India is re-evaluating its long-term security posture for the next decade in response to these developments.

Trump was clearly chasing a flashy headline from the trade deal, similar to what happened with South Korea on rice and beef. In India's case, he wanted to crack open access to dairy and grain markets.

His attempts to pressure India have been just as immature. First, he seemed to think that cozying up to Pakistan would corner India—evident in a string of Pakistan-related remarks and engagements.

Then suddenly, and seemingly out of nowhere, he played the Russian oil card.
Let’s not forget — Russian oil isn’t under blanket sanctions. Other countries are still buying it without facing consequences, so the issue clearly isn't about purchasing the oil. It's just a pretext for applying pressure.

All the progressive values the West claims to uphold in the 21st century — awareness of gender identity, animal rights, and so on — quickly fall away when dealing with countries that can’t push back (that's what they think, at the moment). It reflects a lingering colonial mindset: suppress those who can’t defend themselves (and they might have miscalculated this time). China isn’t in the same position simply because it holds powerful leverage.

India will remember this episode as yet another chapter in a long history of pressure and double standards from the West.

Edit: Spell

curiousstrider

Trump doesn't realize everyone keeps seeing him back down. TACO is public knowledge. He has lost his leverage.

Cultural-Flow7185

If the issue is just importing Russian oil/arms, why are there just 15% tariffs on Turkey who does the same?

DeciusCurusProbinus

Australia knows from the cricket pitch to never underestimate India. If only USA played more cricket.

likedarksunshine

Dull_Conversation669

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