The recent announcement of a 25% additional tariff on Indian goods by US President Donald Trump has sent shockwaves through India’s export community.
Effective August 1, this decision is expected to significantly impact Indo-US trade relations, potentially costing Indian exporters around $7 billion annually.
The Chamber of Trade and Industry (CTI), the top organization of traders and factory owners have shared huge concerns
This announcement has increased tension among Indian traders. Goods are already on the way under old rates, and now the uncertainty is hurting both exporters and payment cycles –Brijesh Goyal CTI Chairman
Goyal highlighted India exports variety of products like metal, pearls, stones, leather, chemical, textiles, electronic, electric, spices, machinery parts, pharmaceutical, Medicine and rice etc. to the US
The imposition of tariffs will significantly impact exports from Delhi to America, affecting the payment system and causing difficulties for traders and businesses on India and America sides.
With goods already in transit being delivered at the old rate, traders are facing uncertainty about pre-orders, creating an atmosphere of unease in the business community.
Imposition of 25% tariffs is expected to disrupt not only trade flows but also supply chains, pre-existing export agreements, billing systems.
CTI General Secretary Gurmeet Arora echoed similar sentiments, stating that the announcement had come as a blow to domestic businesses that were only beginning to recover post-pandemic
“Many exporters are now confused about how to handle pre-orders. There’s a lot of uncertainty in the market, and that’s always bad for business”
Adding to the growing resistance, CTI’s Senior Vice President Deepak Garg and Vice President Rahul Adlakha have warned of a possible nationwide campaign against American products, taking a cue from earlier successful efforts like the “Boycott Chinese Goods” movement during Indian festivals.
CTI will soon consult with trader bodies to launch a campaign against American goods. If China could face a boycott during festivals, why not the U.S.? India consume a lot of US products from beverages and snacks to large food chains and digital services, All of this will be targeted.
