US tariff hike threatens Kerala’s export economy, says state finance minister

Thiruvananthapuram: Finance minister K N Balagopal warned that the 25% tariff imposed by the United States on Indian products could seriously hurt Kerala’s economy. The higher tariff would badly impact exports of key products like marine foods, spices, and tea, he said.Balagopal said the US-led trade war with countries worldwide would cause a major crisis in global trade and economy, hitting India hard. He made these remarks while inaugurating a seminar on ‘Post-Covid Development Challenges and Response: Through the lens of Kerala budgets,’ organized by Gulati Institute of Finance and Taxation.He added that developed countries like the US and Australia are pressuring the Union govt to open up the markets for agricultural products, milk and milk-based products. Reports suggest that Australia can sell milk in India at a much cheaper rate (Rs 30/litre). If cheaper milk floods Kerala’s market, local milk producers could face serious difficulties.He criticized the campaign that Kerala is in a debt trap and its total debt has mounted to Rs 6 trillion. “This is absolutely baseless and a section of experts had been spreading false information about the debt status of Kerala through social media platforms,” he said.He clarified that Kerala’s total debt at the end of FY 2025-26 would be around Rs 4,70,000 crore. According to the trend prevailing over the last three decades, Kerala’s total debt has doubled in every five years. Kerala’s debt could have crossed Rs 6 trillion as per this cyclical trend, he added.Economist M A Oommen added that Kerala’s fiscal condition has worsened due to repeated natural disasters and the Covid pandemic, which have severely impacted the state’s finances.