US tariff hikes threaten Indian exports, industry leaders urge trade talks for equitable solutions

Indian goods imported into the United States are now subject to a 25 percent tariff starting August 7, according to an executive order signed by U.S. President Donald Trump on July 31.

These tariff increases, coupled with uncertain negotiation prospects between the two countries, have resulted in significant export orders being halted and have caused huge distress to relevant Indian industries.

"The impact of U.S. tariff hikes on the metal products industry has been significant. Almost all orders from the U.S. have been canceled, leading to a slowdown in work progress. Currently, only the machines behind me are still producing for U.S. orders. All other orders have been canceled, resulting in a backlog of goods," said Akhilesh Upadhyay, president of the Bharatiya Steel Buffering Operator Association.

"It is definitely a difficult situation for the Indian exporters. They have already prepared the order. In a number of cases, they have provided loans for the raw material purchases also and in many of the cases they booked space on containers. So, in that situation, the industry will be definitely facing the problem, but at the same time, we are engaged with the government to find some way out for that," said Ajay Sahai, director general and CEO of the Federation of Indian Export Organizations.

Indian public opinion suggests that U.S. tariff policies could slow global trade growth and undermine the United States' own economic development. Indian business circles are calling for a prompt resolution of the dispute between the governments of India and the U.S. to promote equitable development in bilateral trade, rather than sacrificing India's interests.

Highlighting the challenges posed by the ongoing tariff war, Bhavesh Jain, CEO of Shree Vallabh Metals, emphasized the need for Indian exporters to diversify their markets while addressing the broader trade dynamics.

"Indian exporters are definitely going to suffer due to the tariff war, and our government is trying to amicably solve this matter with the American counterpart and find a mutual way to carry on the business in a mutual way, which is on an equal platform and not at the cost of the Indian people, because America is trying to dominate in this trade war and they want to sell more and more products to the Indian markets. But this also sends a clear message to the Indian exporters that please don't be dependent on a single market, try to export your products to multiple countries," said Jain.