Kutch region ports will be less impacted by US Tariffs
BHUJ : The impact of tariffs imposed by US President Donald Trump is being evaluated globally. However, the ports in the Kutch region in Gujarat are not likely to get affected by it. The tariffs of 25 per cent will be effective from April 2.
Adani Group spokesperson Jaideep Shah said that the tariffs imposed by the Trump administration are affecting the entire world. However, Trump’s policies will have minimal impact on India’s cargo volumes at Adani Ports and SEZ (APSEZ) , as it is said to be doing small mergers and acquisitions both upstream and downstream for its logistics business.
At the recent HSBC Global Investment Summit , the management told analysts that US-bound cargos are only a small part of India’s trade, so the impact of tariffs would be minimal. According to analysts, even if India’s exports to the US decrease due to tariffs, India can compensate for it from other countries. Especially on APSEZ, its impact will be more limited.
A comprehensive announcement of reciprocal tariffs to reduce the trade deficit is also expected on April 2. However, some trading partners may receive concessions or reductions in tariffs.
According to the information received from the Deendayala Port Authority of Kutch, Kandla port, which exports a large quantity of goods, will see the impact of the 25 percent US tariff. However, the magnitude of the impact is difficult to gauge as India does not export large quantities of goods to the US.
Mainly, medical sector goods, electronics items, textile-related goods and automotive parts are exported from the port. If the tariff increases, then the exports will also decrease which will decrease the income of the port authority, affecting the overall business.
