Impact of US Tariffs on Indian Exports: Commerce Ministry’s Response | India Business News
NEW DELHI: The commerce ministry on Thursday said it is working on expediting the rollout of an export promotion mission to support exporters, adding that the 50% tariffs imposed by the Trump administration on Indian shipments will not be a “very long-term loss.““It is an understood thing that 50% tariffs are going to impact trade. There will be an impact on the textile, chemicals and machinery sectors in the short run, but it will not be a very long-term loss,” Commerce ministry official told ANI.“We are trying to expedite the rollout of the Export Promotion Mission (EPM) as soon as possible, so that it will give some impetus and support to the industry. We need to create resilient supply chains, whether these are export supply chains or import supply chains,” the official said.“Every challenge or crisis is a new opportunity. It’s a wake-up call for industry, for governments, everybody, to see how we can diversify our exports,” they official added.The official noted that exporters are worried and have flagged concerns about slowing orders on the liquidity front.“The industry is worried; they have been sending representations. The industry has pointed out that in the short run, their orders will face slow down, they will face a liquidity crunch. They will be under financial strain to run their operation,” the official said.But “and all issues are under consideration of the government” they added.On trade talks, the official said India remains hopeful of resuming negotiations on the proposed bilateral agreement with the US.“We are hopeful to get back on the table soon. Whenever we strike a deal, both the tariffs (additional 25% and 25% on purchase of Russian oil) need to be addressed,” another official told PTI, while adding that no new dates have been finalised yet.The additional 25% tariff imposed by Trump on Indian goods over New Delhi’s purchases of Russian oil have came into effect, raising the overall levy on exports to 50% on August 27.Trump had first announced reciprocal tariffs of 25% on India from August 7, alongside similar levies on about 70 other countries. He later doubled tariffs on Indian goods to 50%, citing Russian crude imports, but allowed a 21-day window for negotiations.
