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Odia diaspora in US warns tariffs on India could backfire, fuel inflation and strain ties

EDITED BY : 2MINS READ

The recent imposition of 25 per cent tariffs by the US on Indian exports has sparked concern among the Odia community in North America, with many professionals and entrepreneurs warning of significant economic repercussions.

Odia diaspora in US warns tariffs on India could backfire, fuel inflation and strain ties

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 Members of the diaspora argue that the move is likely to increase inflation in the US, disrupt bilateral trade, and undermine India–US relations at a time when global partnerships are increasingly vital.

Calling the decision “short-sighted,” Debashis Sahoo, associate professor of computer science, engineering, and paediatrics at the University of California, San Diego, likened it to a self-defeating act.

“The tariffs remind me of Kalidasa's branch-cutting metaphor. Experts feel it will harm the US more than India,” he said.

The tariffs, which raise the cost of imported goods, are expected to push up prices across a range of sectors. Businesses often pass increased input costs to consumers, leading to higher retail prices.

Rhode Island-based businessman Akshaya Mohanty said, “The prices of clothes, diamonds, and pharmaceuticals imported from India will increase, and consumers will end up paying more. However, the final effect still needs to be studied.”

Also read: Could rising US tariffs spark a new chapter in India-US trade tensions?

Sanjay Dalai, an IT professional, noted that the move will hurt US companies that depend on intermediate goods from India, such as automobile parts and IT hardware.

“Indian exporters will also suffer, particularly in sectors like steel, aluminium, engineering goods, textiles, and automobile parts,” he said.

Dalai further warned that the tariffs could strain the broader strategic relationship between Washington and New Delhi, especially in key areas like technology, defence cooperation, and critical minerals.

Sahoo echoed this concern, cautioning that retaliatory tariffs from India could further restrict US access to key markets.

He said, “Together, these effects could weaken America's economic competitiveness and slow down growth.”

Note: To feature your brand and share insights, contribute an article or interview in our forthcoming e-magazine "American ALuminium Industry: The Path Forward".

Information source: The Times Of India

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EDITED BY : 2MINS READ

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