Goyal to meet exporters in Mumbai to discuss impact of 25% US tariff

Commerce and Industry Minister Piyush Goyal will hold meetings with exporters from different sectors, including food processing, textiles, engineering, and chemicals, from August 2-4 in Mumbai to discuss the implications of 25 per cent tariff announced by the US, an industry official said on Friday.

The official added that exporters from segments such as fisheries, engineering, IT, and pharma will also participate in the deliberations.

Leather sector exporters are expected to meet the minister on August 4 here.

The US on Friday slapped a 25 per cent tariff on India, potentially impacting about half of the $ 86-billion Indian exports to America, while the other half, including pharmaceuticals, electronics, and petroleum products, continued to be exempted from the levy.

 

New Delhi continues to be engaged in talks with the US to work out a trade deal, but will make no compromise on agricultural, daily and genetically modified (GM) products, sources said on Friday.

For the sixth round of talks, the US team is coming to India on August 25.

The sectors, which would bear the brunt of 25 per cent duty include textiles/ clothing ($ 10.3 billion), gems and jewellery ($ 12 billion), shrimp ($ 2.24 billion), leather and footwear ($ 1.18 billion), animal products ($ 2 billion), chemicals (2.34 billion), and electrical and mechanical machinery (about $ 9 billion).

In 2024-25, the bilateral trade between India and the US stood at $ 131.8 billion ($ 86.5 billion exports and $ 45.3 billion imports).

Export sectors that will be impacted by the tariff have urged immediate intervention by the government on the matter.

Sudhir Sekhri, Chairman, AEPC (Apparel Export Promotion Council), said, "We request immediate government intervention to offset this huge setback. Exporters have their back against the wall and will have to sell below cost to keep their factories running and avoid mass layoffs."  Indian shrimp exporters face an unprecedented new challenge in the US market, which contributes close to 48 per cent of their exports, Crisil Ratings Senior Director Rahul Guha said.