The Indian exporting community is “very” concerned about the possible reciprocal tariffs of the US as it could severely hurt MSME shipments to America in the short run, Federation of Indian Export Organisations President SC Ralhan said on Wednesday.
Photograph: Rajendra Jadhav/Reuters
He suggested that the government should come forward and support exporters to deal with these tariffs.
“Reciprocal tariffs in the range of 10 per cent are manageable but beyond that will have serious implications on Indian exporting community, particularly MSMEs.
“The duties will have a short-term impact on India’s exports to the US as both the countries are negotiating a bilateral trade agreement,” Ralhan told PTI.
The US tariffs will definitely impact demand for Indian goods in the US market, he said adding buyers are already holding orders as there is an uncertainty over import duties.
Goods from sectors, including agriculture, precious stones, chemicals, pharma, medical devices, electricals, and machinery, may get impacted if the US goes ahead with imposing reciprocal tariffs on Indian products.
US President Donald Trump has said the tariff announcements, scheduled for early morning Thursday (India time), will amount to a ‘Liberation Day’ for the US.
The impact of these duties may get reflected in the trade data of the first quarter of 2025-26, Ralhan said.
He has over 50 years of experience in exports, particularly in the engineering and hand tools industry.
He is also the managing director of Ludhiana-based Sri Tools Industries.
According to exporters, higher tariffs, if imposed by the US, would hurt production in factories as it would lead to cost cutting, reduction in manpower hiring and cut in profit margins.
He added that the country’s goods exports may be in the range of $435-440 billion in 2024-25. It was $437 billion in 2023-24.
The data for 2024-25 will be released by the commerce ministry on April 15.
