The Kerala government has announced that it will convene a high-level meeting to evaluate the potential impact of the recently announced US tariff hike on imports from India. The move comes in response to the United States imposing a steep 50 per cent tariff on certain Indian products, a decision that state officials warn could have serious repercussions for Kerala’s economy and export sector.
State Industries and Commerce Department sources said that Kerala, with its significant share of agricultural commodities, marine products, and manufactured goods in India’s export basket, stands to be among the hardest hit. “The increased tariff will affect our exporters directly, leading to reduced competitiveness in the US market and possible job losses in the export-linked sectors,” an official noted.
The government emphasised that sectors such as spices, coir products, seafood, and value-added agricultural goods could see a sharp decline in orders if buyers in the US shift to alternative sourcing countries.
While acknowledging the economic risks, the Kerala government has also urged the Centre to adopt a firm stance in its trade negotiations with Washington. “It is important that India does not yield to unilateral trade measures that undermine our exporters,” a government statement read. Officials indicated that the state will present its concerns to the Union Ministry of Commerce and seek measures to cushion the blow, including potential export incentives and diversification of markets.
The upcoming meeting, expected to be chaired by the Chief Minister, will include senior officials from the Industries, Commerce, and Agriculture departments, as well as representatives from key export bodies. The state is also exploring the possibility of dispatching a delegation to New Delhi to discuss the matter with the Union government.
Trade experts have warned that if the tariff dispute is not resolved swiftly, Kerala’s export-driven industries could face a prolonged slowdown, with ripple effects across the state’s economy.
