The Kerala government will conduct a detailed assessment to measure the impact of the new US tariffs on the state’s exports.
Economists warn the hike could slash orders in multiple sectors and force India to adjust its trade strategy.
Kerala Chief Minister Pinarayi Vijayan on Monday said the recent tariff hike announced by the United States would have a serious impact on the state’s economy and that the government would carry out a detailed assessment of its effects.
Speaking at a government function, Vijayan said the move would affect not only India’s economy but Kerala in particular, given the state’s trade profile. He pointed out that the US is the second-largest importer of Kerala’s agricultural produce, accounting for over 20 per cent of the state’s exports.
Kerala’s key exports to the US include cashew nuts, rice, vegetables, processed fruits, and cereal flour.
The recent U.S. tariff increase stems from Washington’s decision to impose "reciprocal" duties in response to what it sees as unfair trade practices by India, particularly its continued imports of Russian oil. As of early August, the tariffs consist of a base 25 per cent levy plus an additional 25 per cent penalty, bringing the effective rate to around 50 per cent for many Indian exports.
Economists warn that the rate hike could halve exports in key sectors, such as textiles, jewellery, apparel, seafood, and processed foods, dampen GDP growth, and prompt India to rethink its global trade strategy.
(With PTI inputs)
