Amid concerns over potential export disruptions due to US reciprocal tariffs set to take effect on April 2, the Ministry of Commerce and Industry has urged Indian industry players to explore areas where imports from China and other countries could be substituted with goods sourced from the United States, according to executives familiar with the matter, according to the Indian Express.
The move comes just days after US President Donald Trump criticised India’s high tariffs on automobiles and agricultural products. In response, the Indian government is considering tariff reductions and broader market access for US goods in a bid to avert wide-ranging American tariffs that are reshaping global trade dynamics and escalating tensions with major economies such as China and the European Union.
Commerce Minister Piyush Goyal, in a statement, said the government is committed to safeguarding exporters’ interests while pursuing a multi-pronged strategy to secure favorable outcomes for Indian trade. On the issue of reciprocal tariffs, Goyal encouraged exporters to adopt a forward-looking approach and move beyond a “protectionist mindset.”
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During a meeting with industry stakeholders on Thursday, officials discussed the potential opportunities and consequences of the upcoming tariffs. Steel and aluminium exporters reported that $5 billion worth of Indian exports have already been impacted by Trump’s 25 per cent tariff on these metals, which came into effect this week.
“The MSME sector is especially worried, as a significant share of this $5 billion export volume originates from small and medium-sized enterprises,” said Pankaj Chadha, Chairman of the Engineering Export Promotion Council (EEPC) India. He added that Chapter 73, which covers iron and steel products, contributes $3 billion to these exports and is largely driven by MSME players.
Chadha also pointed out that nearly $1 billion worth of shipments currently en route to the US — with an average voyage time of 60 days — will now be subject to the new tariffs.
Industry representatives also provided suggestions on sectors where India could offer greater market access to US goods, including textiles, electronics, gems and jewellery, and carpets. While the textile sector showed openness to granting zero-duty access to US products, the gems and jewellery industry requested a reduction in the current 5 percent duty on cut and polished diamonds to a minimum of 2.5 percent,
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