US Edition
US Tariff on Indian Rice Opens Market for Pakistan
- The US has imposed a 50% tariff on Indian exports, which may hurt India's economy and competitiveness, according to South Asia analyst Michael Kugelman.
- Punjab's industry is feeling the impact, particularly basmati exporters and auto component manufacturers, who believe they will lose market share to Pakistan and China.
- Analyst Michael Kugelman emphasized that India's firm response signifies its stance against intimidation, especially concerning the Indus Waters Treaty and competitive pressures in textile exports.
- Punjab exporters warn that the tariff could make exports to the US unviable, benefiting competitors like Pakistan and China, as they feel pushed into an economic war, highlighting concerns over losing market access.
11 Articles
11 Articles
Michael Kugelman backs India's tough stance amid US tariff and Pakistan threat
Michael Kugelman says India is right to assert it “won’t be intimidated” after strong remarks, warns US tariffs could hurt exports, and notes Pakistan’s nuclear threat reaffirms its rejection of No First Use policy.
The Trump administration's imposition of a 50% tariff on Indian products, including basmati rice, has given Pakistan an opportunity to increase its share of the US rice market.
"A combination of different factors, such as product differentiation, search, quality and contract agreements, will determine the impact on India's exports," said the Parliament's lower chamber in a written response to the Indian Finance Secretary Panjj Chaudhary. In his explanation, published today by the Indian news agency PTI, Chaudhary specified the structure of the tariff, 25% in force since 7 August and more 25% since 27 August.
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