{"id":90078,"date":"2026-06-03T00:00:00","date_gmt":"2026-06-03T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/mena-india\/?p=90078"},"modified":"2026-06-03T10:00:25","modified_gmt":"2026-06-03T10:00:25","slug":"this-morning-us-proposes-fresh-tariff-on-indian-exports","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/mena-india\/2026\/06\/03\/this-morning-us-proposes-fresh-tariff-on-indian-exports\/","title":{"rendered":"THIS MORNING: US proposes fresh tariff on Indian exports"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Good<\/strong><strong> afternoon, friends. <\/strong>We are at the midpoint of the week, and investment updates are dominating the narrative across today\u2019s issue. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The big story today: <\/strong>Oman India Fertilizer Company is gearing up for a landmark IPO on the Muscat Stock Exchange. The joint venture is capitalizing on soaring global fertilizer prices, proving the resilience of the India-Oman supply chain as the Hormuz crisis continues. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Meanwhile, trade headwinds are gathering on another front. <\/strong>The US is floating a fresh 12.5% tariff hit on Indian exports, and New Delhi is tightening its grip on silver imports to curb arbitrage and ease pressure on the sliding INR.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Plus:<\/strong> Australia\u2019s AirTrunk has secured the green light for a massive USD 21 bn data center hub in Mumbai, and Abu Dhabi's Adia has backed precision-cooling manufacturer KRN Heat Exchangers.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>BUT FIRST- The latest war updates: <\/strong>Iran <a target=\"_blank\" href=\"https:\/\/www.centcom.mil\/MEDIA\/PUBLIC-RELEASES\/Article\/4507109\/us-partner-forces-defend-against-aggressive-iranian-behavior\/\" style=\"\">launched fresh attacks<\/a> on Kuwait and Bahrain last night \u2014 some failed en route, and others were intercepted. In response, US forces launched \u201cself-defense\u201d strikes on Iran\u2019s Qeshm Island. <\/p>\n<p class=\"tag-border-left\">More US tariffs? <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><a id=\"wwtt1\"><\/a>  <strong>The<\/strong><strong> Office of the US Trade Representative (USTR) is floating a 12.5% <\/strong><strong>additional duty on Indian goods <\/strong>following an investigation alleging the country\u2019s failure to curb forced labor in the supply chain, <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-06-03\/us-proposes-broad-tariffs-of-at-least-10-citing-forced-labor?srnd=phx-india-v2\" style=\"\">Bloomberg<\/a> reports. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>India has denied USTR\u2019s allegation that it failed to impose prohibitions on forced labor in goods exported to the US and has asked Washington to drop the probe.<\/strong> The proposal comes as US and Indian negotiators are in New Delhi working on a bilateral trade agreement, with New Delhi expected to push for relief from the investigation and lower tariffs compared to rival exporters.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Why it matters: <\/strong>The proposed 12.5% duty adds an export-side risk for India, while the Iran war pushes up oil and gas prices. The final impact will depend on the product list, exemptions, and whether India secures relief through trade talks. <\/p>\n<p class=\"tag-border-left\">Keep that silver away<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><a id=\"wwtt2\"><\/a>  <strong>India<\/strong><strong> has tightened restrictions on silver imports<\/strong>, applying licensing requirements to silver grains, powder, and other forms containing 99.9% purity, as per a <a target=\"_blank\" href=\"https:\/\/ent.news\/2026\/6\/246.pdf\" style=\"\">government order (pdf)<\/a>. This is the latest move in New Delhi\u2019s efforts to curb non-essential imports and ease pressure on the sliding INR.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What\u2019s changed: <\/strong>Importers will now require prior authorization from the Directorate General of Foreign Trade (DGFT) before bringing in the metal. This follows last month\u2019s decision to place silver bars and semi-manufactured silver products under the \u2018restricted\u2019 category and to raise import duties on gold and silver to 15% from 6%.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>A ballooning import bill? <\/strong>The crackdown comes after India spent a record USD 12 bn on silver imports in FY 2026, up from USD 4.8 bn last year. Imports surged 157% y-o-y to USD 411 mn in April alone. While silver is used in jewelry, coins, and industrial applications, such as solar panels and electronics, recent demand has been driven by investors. Record inflows into silver exchange-traded funds have amplified imports, raising concerns about the fallout on India's trade balance as energy prices continue to inflate the import bill.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Why it matters:<\/strong> India sources much of its silver from the UAE, the UK, and China. The latest restrictions add another layer of oversight for bullion traders and refiners operating along the India-Gulf corridor. <\/p>\n<p><strong>The UAE angle: <\/strong>While India raised silver import duties to 15%, it maintains a concessional 7% rate for UAE imports under the India-UAE CEPA. The wider duty gap has raised concerns that traders could reroute global silver shipments through Dubai to seek lower tariffs. By introducing licensing mandates, New Delhi is trying to curb arbitrage-driven imports and retain greater control over silver inflows.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\"> All red for Indian stocks <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><a id=\"wwtt3\"><\/a> <strong>Indian<\/strong><strong> equities slipped again today amid foreign investor sell-off. <\/strong>Nifty 50 was down 0.89%, while the BSE Sensex fell 1.06% in early trading, putting both benchmarks on track for a fifth successive trading session.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What\u2019s driving the decline: <\/strong>Renewed hostilities in the Gulf and stalled US-Iran peace talks are keeping crude prices elevated, raising inflation, currency, and growth risks for India, the world\u2019s third-largest oil importer and consumer. Foreign investors have pulled a record USD 26.8 bn from Indian equities so far this year. IT stocks led the decline, with the Nifty IT index falling 4.3% after gaining 7% over the previous two sessions. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">^^ We have more on declining Indian equity markets and the factors driving the sell-off in this afternoon\u2019s Planet Finance. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\"> Happening today<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Venezuela\u2019s<\/strong><strong> Acting President Delcy Elo\u00edna Rodr\u00edguez G\u00f3mez begins a five-day visit to India today<\/strong>, putting energy ties back on the India-Venezuela agenda, according to the <a target=\"_blank\" href=\"https:\/\/www.mea.gov.in\/press-releases?dtl\/41254\/Visit_of_Acting_President_of_the_Bolivarian_Republic_of_Venezuela_to_India_June_03__07_2026\" style=\"\">External Affairs Ministry<\/a>. Rodr\u00edguez will meet with Prime Minister Narendra Modi, and talks are expected to cover energy, trade, investment, pharma, healthcare, transportation, and renewable energy.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Hormuz hedge: <\/strong>The visit comes as India is buying more Venezuelan crude, while Gulf supplies remain exposed to the Strait of Hormuz disruption. India was the second-largest importer of Venezuelan oil in May, buying 427k bbl \/ d, behind only the US, <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/world\/india\/venezuela-interim-president-rodriguez-visit-india-june-3-7-2026-06-02\/\" style=\"\">Reuters<\/a> reports. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\"> The big story abroad<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>No single story is dominating the global front pages this afternoon <\/strong>\u2014 but among the stories making headlines: <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#1- SpaceX will reportedly raise USD 75 bn in its highly-anticipated IPO<\/strong>, selling 555.6 mn shares at USD 135 a pop, unnamed sources told <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/business\/media-telecom\/spacex-plans-raise-75-billion-ipo-135-per-share-source-says-2026-06-03\/\" style=\"\">Reuters<\/a>. These figures put the firm\u2019s valuation at USD 1.75 tn. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#2- Microsoft <\/strong><strong><a target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2026\/06\/02\/microsoft-unveils-new-ai-models-lessen-reliance-on-openai-lower-costs.html\" style=\"\">launched<\/a><\/strong><strong> its own AI offerings<\/strong> at its Build conference to compete with proprietary models, including coding assistants and reasoning models, which would lower costs and reliance on OpenAI products. The tech giant also unveiled Project Solara, a <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/world\/china\/microsoft-expected-showcase-new-pc-cloud-ai-tools-developer-conference-2026-06-02\/\" style=\"\">family of prototype devices<\/a> designed to host AI agents that carry out complex tasks autonomously.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#3- Investors seem bullish and unafraid: <\/strong>Concerns over inflation and elevated asset prices are trumped by optimistic sentiments, as financial markets currently exhibit \u201cmore greed than there is fear,\u201d Goldman Sachs CEO David Solomon <a target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/09d94a90-a228-4c86-b01c-f9cb99d4e3a8?syn-25a6b1a6=1\" style=\"\">said<\/a>. He added that so long as investors remain bullish, there is ample liquidity to absorb massive upcoming IPOs from companies like SpaceX, Anthropic, and OpenAI.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#4- The UN General Assembly <\/strong><strong><a target=\"_blank\" href=\"https:\/\/news.un.org\/en\/story\/2026\/06\/1167626\" style=\"\">has elected<\/a><\/strong><strong> its next head. <\/strong>Bangladeshi Foreign Minister Khalilur Rahman narrowly defeated Cyprus\u2019 Andreas Kakouris to secure the presidency of the UN General Assembly. <\/p>\n<div class=\"row\">\n<div class=\"col-md-12 subscribe-box-panel\">\n<div class=\"\">\n<div class=\"title\">\n<h4 class=\"fw-lighter mb-10\">   Get <b style=\"font-weight: 700\">Enterprise<\/b> daily   <\/h4>\n<\/p><\/div>\n<p class=\"mb-10\">The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.<\/p>\n<p>  <a target=\"_blank\" href=\"\/egypt\/en\/user\/NewsLetters\" type=\"button \" class=\"btn-green px-3 d-flex align-items-center\">Subscribe here<\/a>  <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">***<strong>YOU\u2019RE READING EnterpriseAM MENA - India, your C-suite briefing<\/strong> on the movement of trade, investment, people, and ideas along one of the world\u2019s most exciting corridors. Every Monday, Wednesday, and Friday at 2:30pm UAE, we dive deep into the business, finance, economy, and policy headlines and trendlines that will move markets and set the tone for your day. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Were you forwarded this briefing? <\/strong><a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/mena-india\/newsletters\/\" style=\"\">Tap or click here to sign up without charge for your own<\/a><a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/mena-india\/newsletters\/\" style=\"\">copy<\/a>.***<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\"> Circle your calendar<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Check out our full calendar on the web<\/strong> for a comprehensive listing of upcoming news events, national holidays, and news triggers.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Plus: Silver joins India\u2019s import-control 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proposes fresh tariff on Indian exports","related_issue":[90076],"teaser":"Plus: Silver joins India\u2019s import-control list"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>THIS MORNING: US proposes fresh tariff on Indian exports - MENA India Corridor<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/mena-india\/2026\/06\/03\/this-morning-us-proposes-fresh-tariff-on-indian-exports\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"THIS MORNING: US proposes fresh tariff on Indian exports\" \/>\n<meta property=\"og:description\" content=\"Plus: Silver joins India\u2019s import-control list\" \/>\n<meta property=\"og:url\" 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