US Tariff Announcement and Its Impact on Indian Exports

When the US announces its reciprocal tariffs on Wednesday, the Indian government will closely monitor the calculation methods, especially considering President Trump's comments on subsidies and VAT on imported goods. The specifics of how these duties are imposed, including any product-specific actions, will be crucial for India's response strategy.

India's Engagement with the US Administration

The Indian government has been actively engaging with the Trump administration at various levels, hoping to avoid retaliatory measures. Despite these efforts, US authorities have indicated that exceptions are unlikely, especially for key sectors like agriculture, which could give the US additional leverage in future bilateral talks.

Exporters Brace for Impact

Exporters are anticipating a slowdown in demand as US market prices rise due to the new tariffs. Kama Jewelry MD Colin Shah notes a temporary surge in March exports but warns of potential disruptions in the coming months until a trade agreement is finalized.

India's Strategic Response

Commerce and Industry Minister Piyush Goyal emphasized India's tariff policy aims to protect domestic industries and enhance competitiveness. The government is also pushing forward with negotiations for other trade agreements to mitigate the impact of US tariffs.