Trump's 25% tariff, penalties raise alarm: Indian exporters fear order cancellations; urgent support sought from government
Businesses are expressing worry about potential order cancellations from American clients, given the 25% duty on Indian products, which exceeds rates for rival nations like Bangladesh, Pakistan and Vietnam, alongside an additional penalty causing uncertainty.
During discussions with commerce and industry minister Piyush Goyal, various sector representatives, including textiles, steel, engineering and agriculture, reportedly requested swift implementation of an Export Promotion Mission, US market assistance, and interest equalisation for export credit.
'Exporters spoke about the adverse effects of tariffs. They want support,' said an official, quoted by Economic Times.
Since August 7, the US will be implementing a uniform 25 per cent duty on all Indian goods, plus a penalty. This substantial duty could affect nearly 50% of India's US exports, which exceed $85 billion.
A textile sector spokesperson highlighted that the 25% duty puts India at a disadvantage compared to competitors who face lower tariffs.
Industry representatives indicated that a 20% rate could have been shared amongst importers, exporters and consumers, but the current 25% necessitates fiscal support, such as enhanced benefits under the Rebate of States and Central Taxes and Levies scheme.
The textile sector warned about possible job losses, as America represents one-third of India's textile exports, with the higher duty potentially reducing business. "The US market is price sensitive with lower design elements. The impact will be visible on core sport items like T-shirts and home textiles from September when the peak season for textiles starts," the textile industry representative said, as quoted by ET.
America was India's primary export market in fiscal 2025, with exports worth $87 billion, representing approximately 20% of the total $437 billion.
"Had an insightful interaction today in Mumbai with leading industry captains from India's vibrant textiles sector. Discussed bold ideas to enhance global competitiveness, sustainability, innovation & value chain integration. Together, we're weaving India's rise as a global textiles powerhouse," Goyal wrote in a post on X.
"Held a productive dialogue with major steel producers in Mumbai. Focused on ideas like advanced tech adoption, reducing logistics costs, increasing iron ore production, and expanding India's role in global value chains by making our MSMEs more competitive. Looking forward to a collaborative road map ahead to forge a resilient & future-ready steel industry," he added.
Also read:
Forced pivot from Russian crude oil after Trump's 'penalty' could cost India $9–11 billion- What analysts say
Industry participants noted unclear penalty guidelines limiting orders and requiring incentives. Additionally, uncertainty about Russian import-related penalties and unspecified landed costs deterred buyers from placing orders.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
13 minutes ago
- Indian Express
Delhi Confidential: Happy moment
Representing Varanasi in Lok Sabha since 2014, Prime Minister Narendra Modi has set up an office there as a Lok Sabha MP, manned by seven-member staff. In the last over 11 years, the PM has visited this office only once, however, several ministers and other party leaders do visit the place. During the PM's trip to his constituency on Saturday, the PM met the staff on the backside of the dais after his public meeting. The PM spent a very few minutes with the staff and also stood for pictures with them. 'Vo bhi bahut khush the, hum sab bhi bahut khush hain (He was very happy, so were we),' one of the staff said after the meeting. Here & There As several ministries are in the process of moving out of North Block and Nirman Bhawan into the new office buildings built as a part of the Central Vista plan, last week saw officials shuffling from one building to another to attend internal meetings. While the Home ministry has shifted out of North Block completely, the Personnel ministry is in the process of moving to the new Common Central Secretariat. Similarly, the Housing and Urban Affairs ministry is yet to move into the new office block on K G Marg, but the Minister, Manohar Lal, has shifted his office. Sources say the shifting would be completed after the Monsoon Session of Parliament. Till then, some ministries may be operating out of multiple locations. Official Tally Data submitted by the Ministry of External Affairs in Parliament in response to two back-to-back questions from BJP Rajya Sabha MP Satnam Singh Sandhu officially declared that PM Modi surpassed eight of his predecessors by getting awards and recognition from 27 nations in the last one decade. According to the MEA, Indian PMs received 14 international awards in almost six decades between 1956 and 2015.
NDTV
29 minutes ago
- NDTV
Who Is Dmitry Medvedev, The Russian War Hawk Who Got Under Trump's Skin?
Former Russian president Dmitry Medvedev has become embroiled in a tense back-and-forth on social media that prompted US President Donald Trump to announce he had ordered the repositioning of two US nuclear submarines. Who is Medvedev, what is his track record, and how influential is he? PRESIDENT WHO BRIEFLY RAISED HOPES IN THE WEST Medvedev was elected Russian president in 2008 when Vladimir Putin, having served two terms, was barred from standing again under the law in force at that time. Medvedev ran the Kremlin for four years, with Putin as his prime minister, but widely assumed by analysts in Russia and the West to be still calling the shots, before the two swapped places after the 2012 election - a political manoeuvre that provoked opposition protests. Medvedev, the son of two university professors, had studied law and worked for a time in the private sector. Short in height and quietly spoken, he was described by contemporaries as cultured and intelligent. But president, he was seen initially in the West as a potential moderniser and reformer, prepared to work to thaw relations with the United States. In 2009, he signed the New START nuclear arms reduction treaty with President Barack Obama. But Medvedev's presidency also saw Russia fight a brief war with its neighbour Georgia in 2008, and he failed to achieve his stated goals of tackling pervasive corruption, improving the rule of law in Russia, strengthening the role of civil society and rebalancing the economy to reduce its over-reliance on oil and gas production. AFTER THE KREMLIN Medvedev served as Putin's prime minister for eight years in a period in which tensions with the West escalated anew, particularly over Russia's 2014 annexation of Crimea from Ukraine. But his political fortunes took a dive when he was removed in January 2020 and replaced by Mikhail Mishustin, who has held the post ever since. Medvedev was shunted into a new role as deputy chairman of the Security Council, a powerful body that includes the heads of Russia's intelligence services. WAR CHEERLEADER After Russia's full-scale invasion of Ukraine in 2022, Medvedev carved out a new role for himself as an arch-hawk and full-throated champion of the war, hurling aggressive rhetoric at Kyiv and the West and warning repeatedly of the risk of a nuclear "apocalypse". In May 2024, he said it would be a "fatal mistake" on the part of the West to think that Russia was not ready to use tactical nuclear weapons against Ukraine. He also spoke of the potential to strike unnamed hostile countries with strategic nuclear weapons. His statements - including personal attacks on foreign leaders - were frequently designed to shock, insult and provoke. He referred to Ukrainians as "cockroaches", in language Kyiv condemned as openly genocidal, and called President Volodymyr Zelenskiy a criminal, a drug addict, a louse, a rat and a freak. In January 2023, he accused Japan's prime minister of shameful subservience to the United States and suggested he should ritually disembowel himself. Russian opposition figures have dismissed Medvedev's outpourings as sad, impotent rants. However, some Western diplomats say they give a flavour of the thinking in Kremlin policy-making circles. Until now, they have rarely provoked a direct response from Western leaders. SPAT WITH TRUMP That changed last month when Trump rebuked Medvedev and accused him of throwing around the "N" word after the Russian criticised US air strikes on Iran and said "several countries" were ready to supply Iran with nuclear warheads. When Trump imposed a deadline on Moscow to end the war in Ukraine or face further sanctions, including on buyers of its exports, Medvedev accused him of playing a "game of ultimatums" and moving a step closer to war between Russia and the US. Trump retorted: "Tell Medvedev, the failed former President of Russia, who thinks he's still President, to watch his words. He's entering very dangerous territory!" Medvedev waded in again last Thursday, saying Trump's "nervous reaction" showed Russia was on the right course and referring again to Moscow's nuclear capabilities. Trump delivered his statement the following day on posting US nuclear submarines in "the appropriate regions", since Medvedev has not posted again.
Time of India
30 minutes ago
- Time of India
BJP govt's ‘Swadeshi' call mere rhetoric: Akhilesh
1 2 Lucknow: Taking on the BJP-led govt at the Centre for its call to promote 'Swadeshi' products, Samajwadi Party national president Akhilesh Yadav on Sunday described it as mere 'jumla' (rhetoric) and accused the BJP of touring the world to request countries to enter into trade agreements. "BJP ka swadeshi bhi ek jumla hai (BJP's call for Swadeshi is only rhetoric)," Akhilesh said, adding that in India the BJP is calling upon people to use Indian products while BJP delegations are touring the world urging for trade agreements. "If the BJP had the right intentions, it would never have had 'jhoola' (swing) moments and had not gifted gold chains to those who chained our countrymen," he said. Akhilesh's 'jhula' jibe was in apparent reference to the 2014 visit of Chinese President Xi Jinping and the First Lady who, accompanied by PM Modi during their visit to Gujarat, sat on a swing for a photo op. Similarly, his charge of Indians being chained is being seen in the light of recent deportations by the US where Indians were sent back handcuffed and chained to each other. The SP chief made the comments a day after the PM, during his address in Varanasi on Saturday, called upon the people to use products manufactured in India. The call came at a time when India is involved in a tariff war with the Donald Trump govt in the US which has imposed a tariff of 25% on Indian goods. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like NRIs Living In Estonia Are Eligible For INR 2 Lakh Monthly Pension. Invest 18K/Month Get Offer Undo As a counter to it, the PM called on Indians to buy and sell Indian products only. 'Even British didn't slap FIRs for edu' Lucknow: Taking exception to Pratapgarh district administration lodging an FIR against Samajwadi Party MLA and others for organising a 'PDA Pathshala' on a school campus that was lying locked, party president Akhilesh Yadav described the move as something that did not happen during even the British rule in India. SP functionaries are organising PDA Pathshalas in protest against state govt's move to merge schools which have low enrolment following a call from the party president urging retired teachers and educated youths to impart education to children in villages where schools have been shut. There were allegations that SP MLA from Pratapgarh RK Verma entered a closed school in unauthorised manner to hold a PDA Pathshala for which an FIR was lodged. Get the latest lifestyle updates on Times of India, along with Friendship Day wishes , messages and quotes !
