Exporters have flagged that a new 10% US tariff on Indian goods will push up landed costs in the American market, but caution against reading too much into the headline figure without weighing India's standing against rival exporters. The tariff, levied by Washington on India and 16 other nations, is tied to efforts to curb forced labour in supply chains.
Where India Stands Against Competing Exporters
FIEO flagged that the extra Section 301 duty will add to costs, even as it urged a wider read of the situation. President S C Ralhan pointed out that India falls into the lower 10% bracket, unlike rivals such as China, Vietnam, Thailand, Turkiye, the UAE, Brazil and South Africa, which face a steeper 12.5% levy, giving Indian exporters a relative edge.
ALSO READ | Trump Tariffs Explained: 10% On Indian Goods, New Levies On 60 Countries — All You Need To Know
Similar Tariffs For Labour-Intensive Rivals
Ralhan noted that competitors in labour-heavy segments like textiles, garments, leather and footwear, among them Bangladesh, Cambodia, Pakistan, Sri Lanka, Indonesia and Malaysia, are subject to the identical 10% rate. This, he said, means Indian exporters largely hold on to their competitive footing, since rival suppliers face a comparable duty burden in the US.
The latest tariff comes against the backdrop of prolonged trade talks between New Delhi and Washington, with both sides working toward a broader bilateral trade agreement aimed at easing duties across a wider range of sectors. Exporters have said a final deal, if concluded on favourable terms, could help offset some of the pressure created by the current tariff regime and further strengthen India's position relative to competing supplier nations.
ALSO READ | India Defends Agri Tariffs, QCOs At WTO Policy Review
FIEO cautioned exporters against sweeping conclusions drawn purely from the additional tariff figure, calling instead for a product-by-product review of applicable US duties, exemptions available, and how competing supplier nations are being taxed.
(With PTI inputs)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
