Top Indian officials are set to brief a parliamentary panel on trade policy, including the US’s recently announced reciprocal tariffs on India. The meeting, chaired by Shashi Tharoor, aims to address concerns over how these tariffs will affect Indian industry and discuss India’s response and negotiations with the US.
Top officials to brief parliamentary panel on US reciprocal tariffs and trade policy
India must prepare for retaliatory measures if President Trump imposes higher tariffs on steel and aluminum. This action would significantly impact Indian exporters. Ongoing trade talks and tariff reductions hint at a negotiated deal. Ministries are working to shield India’s interests, but exporters may face competition from China. The US is India’s largest trading partner.
US President Donald Trump has pledged to impose reciprocal tariffs on India from April 2, citing high import taxes on American goods. This move could impact India’s key exports to the US, including automobile parts, electronics, and textiles. Indian officials are working to mitigate the impact ahead of the proposed deadline.
Jewellery exports from Mumbai’s SEEPZ face a potential setback due to US President Trump’s proposed reciprocal tariffs, which could significantly impact India’s $10 billion annual exports to the US. SEEPZ accounts for 85% of India’s diamond-studded jewellery exports to the US, and tariffs could shift US sourcing to countries with lower tariffs, threatening jobs in […]
Falling US cotton prices due to China’s retaliatory tariffs may boost demand for Indian garments, textiles, and yarn. The industry anticipates cheaper US cotton and reduced Chinese competitiveness will help India expand its market share in the US and Europe. Increased imports of superior US cotton could benefit Indian textile manufacturers and exporters, leading to […]
The United States is urging India to eliminate tariffs on car imports as part of a proposed trade deal, which would pave the way for Tesla’s entry into the market. India, however, is hesitant to reduce tariffs to zero immediately and is consulting with local industries before responding.
The US-India Business Council urges the dismantling of non-tariff barriers and red tape to expedite market access and enhance trade relations between India and the US. With Commerce Minister Piyush Goyal in Washington for talks, the goal is to create a landmark bilateral trade deal to boost economic growth in both countries.
Non-tariff measures like the European Union’s carbon tax and deforestation regulations, along with aggressive industrial policies from countries like the USA and UK, are limiting market access for Indian goods. The Indian government is working on schemes to support MSME exporters, with an emphasis on credit facilities and handling non-tariff measures.
The imposition of high tariffs by the US on imports from China, Mexico, and Canada opens up opportunities for Indian exporters to increase their presence in the American market. Sectors likely to benefit include agriculture, engineering, machine tools, garments, textiles, chemicals, and leather, making Indian goods more competitive against their counterparts.
Indian exports are under pressure due to aggressive trade policies from the US and EU. Factors such as high import tariffs and technological disadvantages are challenging India’s export growth, which needs a 14.4% annual increase to meet targets. The trade deficit persists despite rising exports.