Indian Exporters Warn of Severe Impact from U.S. Tariff Hike
Indian exporters and manufacturing leaders have sounded the alarm over new U.S. tariff hikes, warning they could severely damage export industries and urging both nations to negotiate fair trade terms.
From 7 August, Indian goods imported into the United States will face a 25% tariff under an executive order signed by U.S. President Donald Trump on 31 July. The increase has already disrupted trade flows and caused significant uncertainty in export planning.
Orders Cancelled, Industries Under Strain
Exporters say the new tariffs have triggered widespread order cancellations from U.S. buyers, with some factories forced to slow or halt production.
“The impact of U.S. tariff hikes on the metal products industry has been significant,” said Akhilesh Upadhyay, president of the Bharatiya Steel Buffering Operator Association. “Almost all orders from the U.S. have been cancelled, leading to a slowdown in work. Currently, only the machines behind me are still producing for U.S. orders. All other orders have been cancelled, creating a backlog of goods.”
Ajay Sahai, director general and CEO of the Federation of Indian Export Organizations, said exporters were particularly vulnerable because they had already committed resources to fulfil orders. “In many cases, exporters have taken loans for raw materials and booked container space. The industry will definitely face difficulties, but we are working with the government to find a way forward.”
Calls for Fair Trade Resolution
Many in India’s business community argue that the U.S. tariff policy risks slowing global trade and could even harm America’s own economic interests. They are calling for swift negotiations between New Delhi and Washington to resolve the dispute and secure equitable terms for bilateral trade.
Bhavesh Jain, CEO of Shree Vallabh Metals, stressed the need for diversification. “Indian exporters are going to suffer from this tariff war. Our government is trying to reach an amicable solution with the U.S. on an equal platform, not at the cost of Indian interests. But exporters must also avoid dependence on a single market and seek opportunities in multiple countries.”
Trade War Pressures Mount
The U.S. tariffs come amid wider tensions in global trade, with protectionist measures reshaping supply chains. Indian exporters fear that without an agreement, long-standing commercial relationships could weaken, leading to lasting market losses.
Industry groups are urging the Indian government to protect exporters while pushing for a negotiated settlement that ensures fair access to U.S. markets.
with inputs from Reuters
