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MoreBack to News Headlines
Trump tariff: Exporters are both, cautious and optimistic

Trump tariff: Exporters are both, cautious and optimistic

The Hindu
Thursday, April 10, 2025 11:18 AM GMT

U.S. tariff pause brings relief to Indian exporters, prompting focus on improving global trade and attracting investments.

Be it garment, auto component, or engineering sectors, the U.S. pause on 27 % tariff has come as a relief to the Indian exporters.

“There is a return to some sort of normalcy. But, nothing is final yet. So, both, the industry and the government should look at how India can improve its global trade effectively,” said a textile exporter.

The Union Minister for Commerce and Industry Piyush Goyal met the export promotion council heads on Wednesday (April 9, 2025) and assured of measures to monitor the reciprocal tariff impact and imports. He also said a 24*7 helpline will be created, according to one of the participants at the meeting.

 Export promotion council representatives who did not want to be quoted pointed out that if the current tariff rates continue for shipments to the U.S., with the 125 % duty on China, the biggest adversary (for Indian global trade) is almost out of the picture. The China plus one strategy that the international buyers were looking at will change.

Further, Mexico and Canada have zero duty for quite a few product lines because of the United States- Mexico-Canada agreement. Now, it is a level-playing field for India, Vietnam, South Korea, etc.

Almost all countries are looking at bilaterial trade agreements with the U.S. and when India negotiates with the U.S., it will not only be on tariffs but a host of other issues. In the next 90 days, India should look at what best can be negotiated with the U.S., they said.

In the domestic market, India should be cautious and more stringent on rules of origin for imports because China has scaled up enormously its production capacities, can make goods at almost one-third the cost, and has a huge reserve of several raw materials. It will look at different markets for its products. It is among the 15 countries that are part of the Regional Comprehensive Economic Partnership and India is not a part of it, they said.

Read full story on The Hindu
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