India-US trade deal: Exporters in a fix over possible tariff cost split

Begin talks with buyers, particularly for goods arriving at US ports on or after Aug 1

Indian exporters have begun engaging with American buyers to discuss how a potential additional tariff burden would be split if New Delhi faces a 26 per cent reciprocal tariff in case an interim trade deal is not finalised by August 1. 

Currently, a 10 per cent ad valorem tariff, over and above the existing most-favoured-nation (MFN) duty, continues on American imports. However, from August 1, the US administration is set to impose steep, country-specific reciprocal tariffs on its trading partners. 

The discussions are particularly critical for goods that have already been shipped and will arrive at American ports on or