Redirect Volumes To EU, Latin America To Counter US Tariff: Top Industry Body Advices Centre

Trade and industry body, the PHD Chamber of Commerce and Industry (PHDCCI), has suggested the centre to secure long-term offtake agreements to stabilize demand, and negotiate bundled pricing with major US retailers like Walmart, and Amazon to reduce Trump's tariff induced impact.

In a white paper released Wednesday, the trade association also recommended leveraging India’s diaspora networks in the U.S. to propel continued market access in the U.S.

The US recently announced 25 per cent tariff on India with effect from August 7, while later stating that it will substantially increase it given India's trade dealings with Russia, especially regarding purchase of oil.

The measures suggested by PHDCCI to counter Trump’s punitive tariffs involves redirecting volumes to EU, Canada, Latin America, fast-tracking FTA utilization, and introducing "Make in India Select" premium sub-brands.

Also Read: New Tariffs to Hit $8.1 Billion of Indian Exports, Says PHDCCI

The whitepaper also calls positioning itself as a “China-plus-one" sourcing destination for global buyers, joint ventures for onshore US production, deployment of Agri-Tech solutions in US specialty crop regions etc have all been proposed as possible ways to resist Trump’s tariff war against Indian exports, as per the PHDCCI White Paper.

Dr. Ranjeet Mehta, CEO & SG, PHDCCI, said, "While the 25% US tariff presents challenges, India's robust domestic demand and diversified economy provide resilience. Our analysis shows the impact, though significant in absolute terms, remains manageable at the macro level. This presents an opportunity for Indian businesses to accelerate market diversification and value addition strategies.

While the full impact of Trump’s anti-India measures will be clear only after the quantum and nature of penalty he is going announce against India is known, PHDCCI says that the 25 per cent tariff hike from August 7 will not hit India very adversely. According to PHDCCI, the impact on engineering goods exports from India because of the 25% tariff hike by U.S. will be $1.8 billion.

The impact on electronic goods is estimated to be USD 1.4 billion; pharmaceuticals USD 986 million; gems & jewellery USD 932 million; and ready-made garments USD 500 million, and not more.