US Tariff Hike: Delhi Traders See Temporary Setback

New Delhi, Aug 27 (PTI) Delhi's trade associations on Wednesday expressed concern over the US decision to impose a 50 per cent tariff on Indian goods, but said the impact would largely be temporary as India would explore alternative markets and strengthen domestic competitiveness.

The Federation of Sadar Bazar Traders' Association (FESTA) termed the step "unfair and unwise".

"Tariffs will create a situation of trade war between the two countries," FESTA Chairman Paramjit Singh Pamma said.

They appealed to Prime Minister Narendra Modi to give maximum relief to traders in GST and ensure low-interest loans so that domestic products can remain competitive.

The Gandhi Nagar Market Association described the disruption as temporary. "This is only a short-term problem as our exports will be routed to other countries," said the association's President Naresh Sikka, adding that traders are confident better alternatives will be found under the Prime Minister's policies.

Additionally, Khan Market Traders' Association said Indians are major contributors to America's economy and such decisions must be taken with reflection, not with "impulsive".

Its President Sanjiv Mehra added that "while there may be initial pressure, traders believe the country's exports will increase in the long run".

General Secretary of Kirti Nagar Market Association Ritesh Jitani said dependence on imported machinery may pose short-term challenges, but the push towards self-reliance would benefit the sector eventually.

US President Donald Trump's decision to double tariffs on Indian goods to 50 per cent, citing New Delhi's purchase of Russian crude oil, came into effect on Wednesday.

The additional 25 per cent levy follows a 25 per cent tariff imposed earlier this month as part of a broader trade crackdown on about 70 nations.

Trump had given a 21-day window to negotiate an agreement, which expired on Tuesday.