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Friday, October 10, 2025

Feeling US Tariff Pain, Exporters Ask for Relief; Centre in Wait-and-Watch Mode

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Indian exporters are beginning to feel the strain of fresh tariff measures imposed by the United States, with several industry bodies urging the government to step in with relief measures. The call for support comes as sectors such as textiles, engineering goods, and specialty chemicals report rising costs, reduced competitiveness, and squeezed profit margins in their American markets.

Exporters argue that higher US tariffs have made their products less attractive compared to competitors from countries not subject to such duties. For industries already dealing with fluctuating freight costs, currency volatility, and slowing global demand, the new tariffs add yet another layer of uncertainty. Representatives from export councils have warned that without timely intervention, India risks losing valuable market share in one of its largest trading destinations.

Requests to the Centre range from temporary tax concessions and credit support to faster trade diversification strategies. Exporters are also seeking expedited efforts to negotiate relief through bilateral trade talks with Washington, emphasizing that Indian goods play an important role in balancing the overall trade relationship between the two countries.

However, the government appears to be adopting a cautious approach. Senior officials have indicated that New Delhi is in “wait-and-watch mode,” closely studying both the impact on export numbers and the evolving US policy environment before announcing any direct interventions. Sources suggest that the Centre does not want to rush into unilateral relief measures that may strain fiscal resources or weaken India’s negotiating leverage in broader trade discussions.

Analysts say this strategy reflects India’s balancing act — protecting domestic exporters while keeping the larger diplomatic and trade equation with the US intact. With talks on deeper economic cooperation still on the table, officials are mindful that retaliatory steps or aggressive demands could complicate negotiations.

For now, exporters remain hopeful that the government will at least provide short-term cushions such as low-interest credit lines, logistics support, and export incentives to tide over the current turbulence. As the tariff impact deepens in the coming months, the pressure on the Centre to act may grow, testing its resolve to rely on patience and diplomacy rather than quick fixes.

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