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News Topical, Digital Desk : After the US imposed 50 percent tariff on India, major American retailers including Walmart, Amazon, Target and Gap have now put orders coming from India on hold. Indian exporters were already worried that their orders could be affected due to the increase in tariff.
The cost will increase by 35%
In fact, American companies want Indian exporters to bear the burden of increased cost due to tariff. The cost of goods sold in America is likely to increase by 30 to 35 percent due to tariff. Major exporters of India like Welspun Living, Gokaldas Exports, Indo Count and Trident sell 40 to 70 percent of their goods in America.
It is believed that now due to the orders going to America being put on hold, there can be a 40 to 50 percent decline in trade. Actually, the largest quantity of clothes from India is exported to America. But due to tariff, India's orders can go to Bangladesh and Vietnam.
Donald Trump has imposed a 50 percent tariff on India, while it is only 20 percent on Bangladesh and Vietnam. India had protested against this decision of Trump, calling it irrational, but Trump is adamant on it. There is no hope of this problem being solved until a trade deal is reached.
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