Exporters Brace for Impact Amid Trump's Tariff Announcements

As the business community prepares for the implementation of reciprocal tariffs by former US President Donald Trump, a wave of tension has swept through Indian exporters. The first quarter of the new financial year is anticipated to be particularly turbulent, with significant implications for trade relations between India and the US.

Engineering and Leather Goods Sectors Face Immediate Challenges

Engineering goods exporters, especially those dealing in iron, steel, and aluminum products, are already feeling the pinch. With $5 billion worth of shipments in transit now subject to a 25% additional levy, orders are being put on hold as American buyers await price adjustments. Similarly, the leather goods sector is bracing for potential margin shrinkage, depending on the specifics of the tariff announcements.

Government and Industry Seek Solutions

In response to these challenges, industry leaders and government officials are engaging in proactive discussions to mitigate the impact. There is a growing emphasis on market diversification and strengthening trade partnerships to navigate the uncertain bilateral trade landscape with the US.

Collaborative Efforts to Share Tariff Burdens

Despite the looming threats, some US buyers and Indian suppliers have begun to forge agreements to share the increased costs, highlighting the resilience and adaptability of trade relationships in the face of adversity.