Written by The Banking Post
Indian exporters are bracing for a major blow as the United States prepares to impose an additional 25% tariff on all Indian-origin goods starting Wednesday, effectively doubling duties on some items to as high as 50%.
The move, announced in a US Homeland Security notice, is Washington’s retaliation against New Delhi’s rising purchases of Russian oil. The tariffs will apply to goods entering the US or withdrawn from warehouses for consumption from 12:01 am EDT Wednesday (9:31 pm IST).
The Indian rupee slipped 0.17% to 87.72 per dollar in early trade, even as the greenback weakened against other currencies.
According to the notification, only in-transit shipments with proper certification, humanitarian aid, and items covered by reciprocal trade programmes will be exempted.
Officials in New Delhi admit there is little hope for immediate relief. “The government has no expectation of a delay or rollback of the tariffs,” said a senior commerce ministry official, requesting anonymity. Financial assistance and market diversification support will be provided to affected exporters, the official added.
India has already identified nearly 50 countries, including China, Latin America, and the Middle East, as alternative markets for products such as textiles, processed foods, leather, and marine goods.
Prime Minister Narendra Modi has vowed not to compromise the interests of Indian farmers, even if the tariffs come at a heavy price. His government is also looking to recalibrate regional ties, with Modi set to visit China later this month — his first in seven years.
