New Delhi: Union Commerce and Industry Minister Piyush Goyal is scheduled to meet Indian exporters on April 9 to review the potential challenges arising from Donald Trump’s decision to impose an additional reciprocal US tariff of 26 per cent on Indian goods.
The move by the US under the Trump administration has raised concerns among Indian industry stakeholders about its potential impact on outbound shipments, particularly from the MSME sector.
It should be noted that according to a new White House document, Trump’s reciprocal tariffs on India are reduced to 26 per cent, while a previously published document stated 27 per cent.
The meeting will include senior officials from the commerce ministry, representatives from various Export Promotion Councils (EPCs) and the Federation of Indian Export Organisations (FIEO). According to reports, the discussions are expected to assess the extent of the impact and identify possible support measures for affected exporters.
Exporters have urged the government to roll out fiscal incentives and concessional credit support, especially for micro, small, and medium enterprises, to mitigate the anticipated slowdown in demand.
The effect of the US tariff increase is likely to start showing from May onward, as higher import costs could dampen consumer demand.
The United States remains a key trading partner for India, accounting for around 18 per cent of its goods exports, 6.22 per cent of imports, and 10.73 per cent of total bilateral trade.
Merchandise exports from India have already seen a decline for the fourth consecutive month in February due to broader global uncertainties.
During April- February 2024-25, India’s merchandise exports were valued at $ 395.63 billion, slightly higher than $395.38 billion in the same period the previous year.
Service exports during the same period reached $354.90 billion, up from $311.05 billion a year ago.
Sectors expected to bear the brunt of the new US duties include shrimp, carpets, medical devices and gold jewellery, with exporters warning of a significant downturn in orders if remedial action is not taken swiftly.
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