FM Meets on US Tariffs Impact on Indian Exporters

New Delhi, Aug 28 (PTI) Finance Minister Nirmala Sitharaman on Thursday held an inter-ministerial meeting to discuss possible support measures for exporters to cushion them against the impact of US tariffs, sources said.

Senior officials from different ministries including finance, commerce, textiles, MSMEs, chemicals, and fisheries attended the meet, they said.

The discussions happened in the wake of a steep 50 per cent tariff imposed by the Trump administration on Indian goods entering the American market from August 27, barring few.

According to exporters, labour-intensive sectors including shrimp, chemicals, textiles, leather and footwear, and gems and jewellery would be impacted from this tariff as their goods will become less competitive in the US market as compared to their competitor countries including Bangladesh, Vietnam and Thailand, which are being subjected to lower tariffs.

The minister sought feedback from the senior officials and discussed about the support measures which can be considered for exporters, sources said.

Earlier in the day, apex exporters' body Federation of Indian Export Organisations (FIEO) said that the finance minister has assured them that the government stands firmly with them in this challenging time and is committed to addressing their concerns, while exploring every possible avenue to safeguard their interests amidst high US tariffs.

They apprised her of the challenges faced by Indian exporters due to the recent escalation of tariffs imposed by the US.

"The finance minister reassured the delegation that the government stands firmly behind Indian exporters in this hour. She emphasised that the government is committed to addressing all concerns of the exporting community and will explore every possible avenue to safeguard their interests," the FIEO said.

India's exports to the US during the first four months of this fiscal year have risen 21.64 per cent to USD 33.53 billion. It was USD 86.5 billion in 2024-25. About half of this is out of the ambit of 50 per cent tariffs.

The US accounted for about 20 per cent of India's USD 437.42 billion worth of goods exports in 2024-25. America has been the largest trading partner of India from 2021-22. In 2024-25, the bilateral trade in goods stood at USD 131.8 billion (USD 86.5 billion exports and USD 45.3 billion imports).