Commerce Ministry assures exporters to protect their interests amid US tariff threat

New Delhi: The Commerce Ministry on Thursday assured domestic exporters, particularly those in labour-intensive sectors like leather and textiles, to protect their interests amid the US tariff threats, industry officials said.

The issues related to the country’s exports were discussed during a virtual meeting chaired by Commerce and Industry Minister Piyush Goyal.

Sectors like steel flagged concerns over the possible impact of US tariffs on exports.

Commerce Secretary Sunil Barthwal and Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi also attended the meeting.

One of the industry representatives, who participated in the deliberations, said that the ministry is working overtime on the proposed bilateral trade agreement with the US.

“The ministry assured that India’s export interests will be protected,” they said, adding that the industry was advised not to be overly protective as “reciprocity” is the new world order at present. The discussion assumes significance as Goyal has recently returned from Washington after holding trade talks with his US counterparts. The US has proposed to impose reciprocal tariffs from April 2. It has already imposed these tariffs on steel and aluminium.

Another industry official said the exporting community is concerned about the US threat to impose reciprocal tariffs as it could impact India’s exports to America, which is its largest trading partner.

“Overall, in the meeting, most sectors stated potential opportunities for Indian exporters from this tariff war...we can look at imports which can be diverted from China to the US,” an industry participant said, adding that India is expected to announce initiating free trade agreement talks with another developed country.

In the meeting, concerns were expressed about declining exports.

India’s exports declined for the third month in a row in January, falling by 2.38 per cent year-on-year to USD 36.43 billion, while the trade deficit widened to USD 22.99 billion in the month. Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said: “We are getting good orders from the US to India but actual dispatches are small in value in view of the uncertainty in tariff. We are waiting for tariff clarity”.