US Tariffs Worry Indian Exporters as Economic Tensions Rise

Ludhiana, India – Industrialists in Ludhiana are expressing deep concern over US President Donald Trump’s decision to impose 25% tariffs on selected Indian exports. The announcement has sparked fears of significant order cancellations and adverse economic effects as industries strive to cope with the new trade landscape.

Badish Jindal, president of the World MSME Forum, labeled the tariff a ‘big risk’ for India, projecting that it could potentially cost the country over Rs 1 lakh crore in canceled export orders. He emphasized the importance of the US as a trading partner, with nearly 18% of India’s exports, valued at Rs 7.5 lakh crore, being directed to the American market.

“The US imports around Rs 3.62 lakh crore worth of goods from India, giving us a trade surplus of Rs 3.88 lakh crore. This balance is now at risk,” Jindal warned, highlighting the economic ramifications for India’s export-driven sectors.

Punjab, where approximately Rs 30,000 crore worth of goods are exported to the US annually, is expected to feel the most brunt of the tariffs. Amit Jain, chairman of the Confederation of Indian Industry (CII), Punjab, remarked that the tariffs seem to be a tactical maneuver by Trump aimed at pressuring India into opening up its protected sectors, such as agriculture.

“While this may be seen as a negotiation strategy, the Indian government must tread carefully. Any premature concessions could hurt domestic producers,” he cautioned.

SC Ralhan, president of the Federation of Indian Export Organisations (FIEO), acknowledged that the tariffs are still under discussion and not yet finalized. “However, if these tariffs become permanent, critical sectors like textiles will face significant challenges,” he stated.

As clear evidence of growing tension, industrialists are now calling on the Indian government to reassess its protectionist policies in certain sectors, like automobiles and textiles. The rising dollar rate, which has reached Rs 87.63, complicates matters further, as it will likely lead to inflation that negatively affects the common people.

Jindal added, “Garments from Punjab alone account for Rs 8,000 crore of the total exports. Other significant sectors include fasteners at Rs 2,000 crore and electrical machine tools at Rs 5,000 crore. All these sectors will suffer directly under the tariff implications.”

With the situation unfolding, industrialists remain anxious and are advocating for diplomatic resolutions before further damage is incurred to Indian exports.