Govt urges industry to identify opportunities for choosing US goods over China

With concerns over export interruptions triggered by US reciprocal tariffs scheduled to be implemented on April 2, the Ministry of Commerce and Industry recently urged the industry to identify areas where imports from China and other nations could be substituted with American goods, executives familiar with the development told The Indian Express.

This occurs shortly after US President Donald Trump condemned India’s high tariffs in the automotive and agricultural sectors. The government is pursuing reductions in tariffs and improving market access to prevent extensive US tariffs that are altering global trade and fuelling a trade conflict among major participants such as China and the European Union.

As per a declaration from the Ministry, Commerce Minister Piyush Goyal mentioned that the government is focused on protect exporters' interests while also implementing various strategies to secure optimal results for Indian exporters.

In a meeting with industry representatives on Thursday, officials talked about the effects and opportunities presented by these tariffs. Exporters of steel and aluminium have informed the government that goods valued at $5 billion have already been impacted by Trump’s 25 percent tariffs on these metals.

“The Micro, Small and Medium Enterprises (MSME) sector is particularly concerned, as exports worth $5 billion have been hit by Trump’s recent tariffs. Total exports under Chapters 72/73/76 amount to $5 billion. Chapter 73, covering iron and steel products, accounts for $3 billion and is primarily driven by MSME exporters,” said Pankaj Chadha, Chairman of the Engineering Export Promotion Council (EEPC) India.

Industry representatives additionally contributed feedback on market access that the government could provide the US in areas like textiles, gems and jewellery, carpets, and electronics.

Although the textile industry showed willingness to zero-duty access on US goods, the gems and jewellery sector requested that the government retain a minimum duty of 2.5 percent on cut and polished diamonds, reduced from the current 5 percent.

In the meantime, various exporters informed the government that India is currently receiving increased orders as major US suppliers like China, Mexico, and Canada encounter higher tariffs.