Trump’s 25% tariff, penalties raise alarm: Indian exporters fear order cancellations; urgent support sought from government

Businesses are expressing fear about potential order cancellations from American shoppers, given the 25% obligation on Indian merchandise, which exceeds charges for rival nations like Bangladesh, Pakistan and Vietnam, alongside an extra penalty inflicting uncertainty.During discussions with commerce and trade minister Piyush Goyal, varied sector representatives, together with textiles, metal, engineering and agriculture, reportedly requested swift implementation of an Export Promotion Mission, US market help, and curiosity equalisation for export credit score.

“Exporters spoke about the adverse effects of tariffs. They want support,” mentioned an official, quoted by Economic Times.Since August 7, the US can be implementing a uniform 25 per cent obligation on all Indian items, plus a penalty. This substantial obligation might have an effect on practically 50% of India’s US exports, which exceed $85 billion.A textile sector spokesperson highlighted that the 25% obligation places India at a drawback in comparison with opponents who face decrease tariffs.Industry representatives indicated {that a} 20% charge might have been shared amongst importers, exporters and customers, however the present 25% necessitates fiscal support, similar to enhanced advantages below the Rebate of States and Central Taxes and Levies scheme.The textile sector warned about attainable job losses, as America represents one-third of India’s textile exports, with the upper obligation probably lowering enterprise. “The US market is price sensitive with lower design elements. The impact will be visible on core sport items like T-shirts and home textiles from September when the peak season for textiles starts,” the textile trade consultant mentioned, as quoted by ET.America was India’s main export market in fiscal 2025, with exports price $87 billion, representing roughly 20% of the whole $437 billion.“Had an insightful interaction today in Mumbai with leading industry captains from India’s vibrant textiles sector. Discussed bold ideas to enhance global competitiveness, sustainability, innovation & value chain integration. Together, we’re weaving India’s rise as a global textiles powerhouse,” Goyal wrote in a publish on X.“Held a productive dialogue with major steel producers in Mumbai. Focused on ideas like advanced tech adoption, reducing logistics costs, increasing iron ore production, and expanding India’s role in global value chains by making our MSMEs more competitive. Looking forward to a collaborative road map ahead to forge a resilient & future-ready steel industry,” he added.Also learn: Forced pivot from Russian crude oil after Trump’s ‘penalty’ might price India $9–11 billion- What analysts sayIndustry contributors famous unclear penalty tips limiting orders and requiring incentives. Additionally, uncertainty about Russian import-related penalties and unspecified landed prices deterred patrons from putting orders.