Midnight Assessments Begin as US Tariffs Loom

In a swift response to the recent announcement of reciprocal tariffs by US President Donald Trump, officials in India's commerce department are preparing for an all-nighter. Armed with spreadsheets and data, they aim to assess the potential impact on Indian exporters and businesses.

War Room Activated for Immediate Response

A dedicated war room has been established at Vanijya Bhawan, with senior officers leading the charge. The goal is clear: to prevent panic by providing a preliminary assessment of the tariffs' implications as soon as possible.

Businesses on Edge Amid Uncertain Tariff Plans

Indian businesses are closely monitoring announcements from the White House's Rose Garden, with particular concern for goods in transit and future orders. The uncertainty of Trump's tariff strategy—whether targeting specific countries, product segments, or individual items—adds to the anxiety.

Temporary Impact or Long-Term Challenge?

While the Indian government hopes for leniency amidst ongoing bilateral trade negotiations, the White House's stance remains firm: no exceptions. The consensus within government circles suggests any impact may be temporary, contingent on how tariffs are applied to other nations.

Exporters Fear Margin Squeeze

Exporters are bracing for potential hits to their margins, which could empower American buyers with greater bargaining power. Industry sources speculate tariffs could range between 10-15%, though the final figures remain a mystery.

Investment Plans Hang in the Balance

The prospect of steep tariff increases has cast doubt over new manufacturing investments, especially as Trump encourages American companies to reinvest domestically. Economists warn of weaker economic activity due to anticipated price hikes in the US, prompting companies to adopt a wait-and-see approach.