Donald Trump Tariffs: MSME Sector To Be The Hardest Hit, Says Expert

The MSME sector is going to be hit the hardest by Donald Trump 's trade tariffs, according to Rahul Ahluwalia, the Founder-Director of Foundation for Economic Development told Republic Business .

Donald Trump, announced a slew of tariffs on the world and a whopping 26% on India. After slapping a series of tariffs on American trade partners, Trump said that these are ‘kind reciprocal’.

In his 'Liberation Day' address from the Rose Garden, Trump mentioned that Prime Minister Narendra Modi is a ‘great friend’, adding that India has not been ‘treating the US right’ and has been imposing 67 per cent tariffs on the US.

Damaging Impact Of Tariffs On MSME Sector

According to Ahluwalia, "Trump tariffs will be very damaging for our MSME sector. The US is already the largest export market for India, and future growth prospects are also highest for the US."

He added that if India succeeds in lowering tariffs and carrying out reforms, by trying to 'Make in India for the world', then an opportunity can be created out of this threat.

Additionally, he noted that sectors such as gems and jewelry, textiles, footwear, auto components and pharma/chemicals are sectors that have high exports to the US and will suffer.

"Government should look to reduce India's tariffs and prioritize the deregulation exercise that was already announced by the PM and FM," he said, adding that this will help the Indian industry be good, competitive and take advantage of the tariffs that are being placed on China.

He added that this is a time of fantastic opportunity if we reform.

Also Read: Big Jolt: Donald Trump Slaps Whopping 26 Per Cent Tariffs On India