Tariff Pause: Exporters Negotiate Competitive Deals With US Buyers As 10% Tariff Hits Asian Countries
Indian exporters are using this period to ramp up dispatches and negotiate terms that work for both sides, said Ajay Sahai, director general of Federation of Indian Export Organisations.
As the flat 10% tariff imposed by the US on a wide range of imports from Asia continues, Indian exporters are actively negotiating with American buyers to strike competitive deals ahead of a critical July 8 deadline.
Ajay Sahai, director general and chief executive officer of the Federation of Indian Export Organisations, told NDTV Profit that the current 90-day pause in further tariff escalation has given Indian exporters a tactical edge to push volumes into the US market.
“This window offers a real advantage for Indian exporters. We’re using this period to ramp up dispatches and negotiate terms that work for both sides,” Sahai said.
Indian exporters are currently perceived as more competitive than their Chinese counterparts, according to him. However, the landscape is fast evolving. “American buyers are actively scouting for cost-effective deals. Exporters from countries like Vietnam are willing to absorb up to 5% of the tariff hit. That puts pressure on Indian players to match those terms or risk losing orders,” he explained.
The order pipeline remains strong through early July, and exporters are racing against time to manufacture and ship as much as possible before the temporary relief period ends. “There’s a real sense of urgency. Many are frontloading shipments before July 8,” he added.
While bilateral trade agreement talks between India and the US continue, Sahai cautioned that the post-July scenario remains uncertain. “The outcome of the BTA discussions will shape the trade dynamics going forward. For now, everyone’s focused on maximising the next few weeks.”
The 10% tariff continues to apply across the board, and exporters across Asia are adjusting quickly to maintain their presence in the crucial US market.
