Industry Does Not Want Govt To Yield To US Pressure Tactics

“This move is a severe setback for Indian exports, with nearly 55 per cent of our shipments to the US market directly affected. The 50 per cent reciprocal tariff effectively imposes a cost burden, placing our exporters at a 30–35 per cent competitive disadvantage compared to peers from countries with lesser reciprocal tariff,” said Ajay Sahai, director general, FIEO.

“With 5-6 per cent tariff differential with our competitors, we could have managed. But with an additional 25 per cent tariff along with MFN tariff, neither the Indian supplier nor the buyer can bear,” said Sanjay K Jain, Chair of ICC National Textiles Committee.

Many export orders have already been put on hold as buyers reassess sourcing decisions due to higher landed costs.

However, the industry does not want the government to yield to the US pressure tactics.

“If we stop Russian oil imports, we will be giving in to the blackmail and the whole country will be upset for giving in to the blackmail of Trump,” said Jain.

“The government should engage with the US by firming its stand on non-negotiable sectors and giving priority to national interest,” said Sahai.

“India should not abandon Russian oil purchases simply to satisfy Washington. The US may find a new pretext to tax India again. India should remain calm, avoid retaliation for at least six months, and recognise that meaningful trade negotiations with the US cannot proceed under threats or mistrust,” said Ajay Srivastava, founder, GTRI.

The industry also wants the stronger economies like Russia, China and India to group together.

“China has the advantage of having certain raw materials like rare earth minerals US needs most and hence the US has eased its stand towards China. Similarly, the Indian government should have the guts to put export duties on pharmaceuticals going to the US. India is a big supplier of pharmaceuticals, and the US will be disrupted if pharma supplies are affected,” added Jain.