Donald Trump’s 25% tariff on India: The Narendra Modi government is urging exporters to develop and market domestic brands as a response to the 25% by the Donald Trump administration.
Additionally, it has requested industry feedback regarding an employment-linked programme for specific exports, including marine products, which are currently under pressure from Ecuadorian competition due to higher tariffs.
The United States has implemented a uniform 25% duty on all goods originating from India, taking effect August 7, alongside an undefined penalty. Competing nations such as Pakistan, Vietnam, Bangladesh, and Turkey face lower rates between 15- 20%.
Trump Tariffs: India Pushes For Homegrown Brands
“It is important for Indian exporters to do brand building and promotion to come out of the clutches of any subsidies amid the US tariffs,” an official said. The official noted that export promotion councils could collaborate with the India Brand Equity Foundation for brand development initiatives.
Officials have also indicated that a potential reduction in Export Inspection Council testing fees for smaller exporters could be considered to address their worries about the tariffs’ negative effects on India’s export performance.
The substantial duty increase could impact approximately half of India’s exports to the US, valued at over $85 billion. The textile sector, with $4 billion in trade including t-shirts and home textiles, might face severe consequences, particularly due to reduced tariffs for competing nations.
The commerce and industry ministry has requested sectors like marine food products to propose potential schemes linked to progressive employment, considering Ecuador’s advantageous position with a 15% tariff on shrimp exports.
“While India has a 25% tariff and a penalty, there is a feeling that many countries may not be able to create capacities soon.
Even clients will not shift to Ecuador overnight,” said a representative from an export promotion organisation, noting that these tariffs have reduced the likelihood of swift India-US bilateral trade agreement conclusions.
The government is evaluating a suggestion to restore interest subsidies on MSME exporters’ credit under the proposed Export Promotion Mission.
“If some exporter wants wheat or rice as an intermediate product, the ministry has proposed that the Food Corporation of India can offer these at a fixed price,” indicated a food products exporter.
