As enhanced tariff regime imposed by US President Donald Trump comes into force in India on Wednesday, Prime Minister’s Office (PMO) will hold a meeting on Tuesday to review its impact on exporters and economy. Principal Secretary to the Prime Minister is likely to chair the high-profile brainstorming session.
Starting Wednesday, Indian goods entering the US market will be subject to a 50 per cent tariff after Washington doubled existing duties, increasing cost of exports. The upcoming PMO meeting is expected to finalise the contours of India’s response as exporters prepare for the tariff increase, sources said on Monday.
The meeting comes amid growing concerns that the 50 per cent US tariff could further strain margins for Indian exporters, disrupt supply chains and affect competitiveness in key sectors ranging from textiles and leather to engineering goods and specialty chemicals.
The Ministry of Commerce and Industry has been consulting exporters and export promotion councils to understand the impact of the existing 25 per cent levy, which firms say has already squeezed margins and reduced competitiveness.