U.S. tariff of 10% elicits mixed reaction from Indian exporters
Indian exporters are expressing mixed reactions to a new 10% U.S. tariff, with some viewing it as a manageable disadvantage compared to competitors facing higher rates. However, industry leaders in textiles and jewelry warn that the move could pressure profit margins and create long-term reputational risks.
Why it matters
Trade policy shifts in the U.S. directly impact the competitiveness of Indian manufacturing sectors in the global market.
For the Indian exporters to the U.S., the 10% tariff is likely to have a mixed impact, varying for each sector.
While some exporters are of the view this will make Indian goods expensive, others say that Indian goods are still competitively taxed and so India will not lose its edge.
“The fact that India has been placed in the lower 10% tariff category, while several competing exporting nations, including China, Vietnam, Thailand, Türkiye, UAE, Brazil, South Africa and others, face a higher tariff of 12.5%, reflects the recognition by the U.S. of the policy measures taken by the Government of India to strengthen its framework relating to forced labour,” S.C. Ralhan, president of the Federation of Indian Export Organisations said.
“This has helped India secure a relatively favourable position compared with many of its global competitors,” he added.
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