India exporters steel for tariff deadline

UK Prime Minister Celebrates India‑UK Agreement

Keir Starmer has described the recent pact between his government and India as a “landmark moment,” signalling a new chapter in bilateral trade.

India‑US Tariff Turmoil

• President Trump warned India could face 20‑25 % tariffs if a trade deal is not finalized before the August 1 deadline.
• These rates, though lower than the 26 % reciprocal tariffs announced in April, would still jump from the current 10 % baseline on Indian exports to the United States.
• India, the world’s most populous country, was among the first major economies to engage Washington in comprehensive trade talks.

Exporters Brace for Hard Duties

Ajay Sahai, director general of the Federation of Indian Export Organisations, told AFP that exporters and buyers are “figuring out how they can absorb these hard duties” to keep supply chains intact. “Profit margins will be impacted as both sides look to prevent a drop in trade,” he added.

Progress in Talks

Trade minister Piyush Goyal claimed that talks with the United States were making “fast progress,” while U.S. Trade Representative Jamieson Greer said more negotiations would be needed to gauge India’s ambitions. Both countries are focusing on a broader bilateral trade agreement (BTA) despite Trump’s potential last‑minute announcement.

Strategic Slippery Slope

Trade expert Biswajit Dhar of the Council for Social Development praised India’s resistance to American pressure. “Once you start caving in, that’s a slippery slope,” he said. Dhar urged India to adopt a “Chinese attitude” and cautioned that Trump “needs larger markets.” He added that India’s 45.7 billion‑dollar trade surplus with the United States last year shows the stakes of a comprehensive deal by October.

Impact on Labor‑Intensive Exports

Sudhir Sekhri, chairman of the Apparel Export Promotion Council, noted that order flow from U.S. buyers has been sluggish for two months while waiting for final tariff decisions. “Chinese producers, hit with 30 % tariffs, are diverting production to European buyers,” he explained. Textile and garment exporters pin their hopes on a government conclusion by October, but low profit margins (3‑5 % for textiles, 5‑7 % for garments) make absorbing the tariff shock nearly impossible.