India-US Trade Talks: A Critical Moment for Exporters

Commerce and Industry Minister Piyush Goyal is set to engage with exporters from pivotal sectors including food processing, textiles, engineering, and chemicals in Mumbai from August 2-4. This comes in response to the recent imposition of a 25% tariff by the United States, a move that could significantly impact India's export landscape.

Wide-Ranging Impact Across Sectors

The new tariffs threaten to affect approximately half of India's $86-billion exports to the US, with sectors like textiles, gems and jewellery, and shrimp facing immediate challenges. Despite these hurdles, negotiations between India and the US continue, with the sixth round scheduled for August 25 in India.

Exporters Call for Government Intervention

Industry leaders have voiced their concerns, urging for swift government action to mitigate the tariffs' impact. "Exporters are under immense pressure to sustain operations and prevent layoffs," highlighted Sudhir Sekhri of the Apparel Export Promotion Council.

Looking Ahead

As bilateral trade between India and the US stood at $131.8 billion in 2024-25, the outcome of these discussions could have far-reaching implications for both economies.