Govt Steps Up Engagement With Exporters As US Tariffs On India Set To Hit 50%

The government has intensified its outreach to exporters as the United States prepares to double tariffs on Indian goods to 50%, citing New Delhi’s purchase of Russian crude oil.

"We are in touch with the stakeholders. We know the sectors that are more exposed towards us, our commodity divisions are talking to various EPCs," a senior government official told ANI.

The official said the Commerce Minister has met with export promotion councils (EPCs), particularly in labour-intensive sectors, while other senior officials are holding similar discussions.

"There are two sets of companies, let me say — one which are heavily dependent upon us in terms of their exports. There are other companies that are more diversified, which are not only exporting to us, but also exporting to EU, UK, and other countries," the official explained.

He added that exporters are also working on standardising their products for different markets.

"They may face some challenges which they are identifying, but they are also looking at the other possibilities of diversification. And therefore, you know, our focus on this diversification and this export promotion mission is very, very important," he said.

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The heightened engagement comes after US President Donald Trump, on August 6, announced an additional 25% tariff on most imports from India, on top of an earlier 25%, taking the total to 50% if fully enforced.

Trump accused India’s oil imports from Russia of “fuelling” the war in Ukraine and also imposed penalties over purchases of Russian military equipment.

The new tariffs will take effect on August 27, giving a three-week window for negotiations. India has termed the move “extremely unfortunate” and vowed to safeguard its national interests. A US trade delegation is expected to visit India before August 25 to discuss the matter.

Diplomatically, attention is also on Prime Minister Narendra Modi’s potential visit to New York next month for the UN General Assembly. September 26 is provisionally reserved for India’s “head of government” to speak, raising the possibility of a Modi-Trump meeting during the session.

Meanwhile, Trump is set to meet Russian President Vladimir Putin in Alaska on August 15 to discuss ending the Ukraine war. It will be Putin’s first US trip in a decade.

The US currently runs a $46 billion trade deficit with India.