The Indian government is exploring ways to avert export disruptions caused by US reciprocal tariffs, set to take effect on April 2. The Commerce Ministry has urged industry players to substitute Chinese imports with US goods, hoping to secure better trade terms and avoid escalating economic tensions.
Trump’s Tariffs Impact Indian Exports
- Steel and aluminium exports worth $5 billion have already been hit by Trump’s 25% tariff.
- The MSME sector is particularly vulnerable, with $3 billion in iron and steel products affected.
- $1 billion worth of shipments currently en route to the US will also face new tariffs.
Sectors Discussing Market Access for US Goods
To ease trade tensions, India is considering offering greater access to US goods in sectors such as:
✅ Textiles – Open to zero-duty access for US imports.
✅ Gems & Jewellery – Proposes reducing diamond import duty from 5% to 2.5%.
✅ Electronics & Carpets – Also under discussion.
India May Benefit from Trade Shifts
- As the US raises tariffs on China, Mexico, and Canada, Indian manufacturers see increased orders.
- Despite potential opportunities, WTO warns of trade volatility due to tariff uncertainties.
Conclusion
With tariff tensions rising, India is strategizing to balance trade relations while protecting exports. The success of these measures will depend on India’s competitiveness in global markets.
