New Delhi
The impact of 50 percent of the tariff imposed on India by US President Donald Trump has started showing. In one shock, many of the US -based companies have stopped importing goods from India at present. Its first effect is shown on the textile industry. Pearl Global, known for the sale of clothes at affordable prices worldwide, says that companies like Amazon, Walmart have stopped the deal with it. Clothes are prepared for famous brands like GAP and Kohl’s from Pearl Global. The company says that they received calls at midnight (in the morning) that the supply should be stopped at the moment.
Some companies have emailed and informed about their decision. American buyers clearly say that the increased tariffs should be adjusted to the price of goods or else they will not supply. The reason for this is that after adding the increased tariff, the price of goods purchased from India will be more in the US. In such a situation, the possibility of their sales will be less. Therefore, companies are currently avoiding import of Indian goods. Pallab Banerjee, managing director of Pearl Global, says that we are making customers call. He says that we shift our base to other countries instead of India.
American buyer said- You should bear the burden of tariff, otherwise no business
In a splash with Reuters, Banerjee said that we have asked American partners to be given some time. We will consider shifting our factories in Bangladesh, Indonesia, Vietnam and Guatemala etc. This is because the tariff imposed by the US on these countries is very low. Actually, since April, the bet has been completely overturned. The Donald Trump administration then imposed less tariffs on India than in Bangladesh, Vietnam and China. Then the Indian industry was expected to benefit and it was being said that if the Indian goods would be sold at a low price, the demand in America will increase.
Came out in April, but now the picture overturned
But now the picture is overturned. India has imposed a 50 percent tariff on India, while Bangladesh and Vietnam are only 20 %. China is levying only 30 % tax. Half of the business of Pearl India comes from America itself. Banerjee says that some customers are saying that they will continue to take goods from India, but the increased tariff company will have to adjust. But it is not possible to do this. In fact, 25 percent of the 50 % tariffs imposed on India have come into force from Thursday. Now from August 28, the next 25 percent tariff can be applicable. The US says that this decision has been taken in exchange for the purchase of Russian oil from India.
