Exporters from certain sectors front loading consignments to US taking advantage of 90-day tariff pause
Exporters said as there is an uncertainty about further extension of the tariffs, it is better to ship more goods at a time when tariffs are low. Indian firms need to significantly ramp up production to fill the void following the imposition of 245% tariffs on China
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New Delhi: Taking advantage of the 90-day tariff pause window announced by the US President Donald Trump-led administration, Indian exporters from certain sectors such as gems and jewellery, footwear and garments have started front loading consignments to the US. Exporters said as there is an uncertainty about further extension of the US tariffs, it is better to ship more goods at a time when tariffs are low.
They added that Indian firms need to significantly ramp up production to fill the void following the imposition of whopping 245 per cent tariffs by the US on Chinese goods. "The government should immediately come forward to support manufacturers in this situation in sectors which have high export potential. Some exporters from certain sectors are front loading to take advantage of the pause," Federation of Indian Export Organisations (FIEO) President SC Ralhan said.
China's main exports to the US include electronic goods, computers, machine parts, electric batteries, heaters, toys, furniture, clothing, and footwear. "Because of the imposition of high duties, huge export potential is there for us, and our exporters should look at tapping into that," Ralhan said. Measures are required to enhance export competitiveness, diversify products and markets, and address logistics and infrastructure gaps, he added. Ralhan also suggested easing regulatory burdens and improving access to affordable credit.
After imposing an additional 26 per cent import duty on India, the US on April 9 announced the suspension of these tariffs for 90 days until July 9 this year. An exporter from the leather sector said that some traders are sending goods to take advantage of the pause window. "The footwear sector is assessing the situation. It is a full state of confusion. We will wait and watch and then decide," Leading leather products manufacturer and exporter Farida Group Chairman Rafeeq Ahmed said.
However, the domestic industry has expressed concerns over the possibility of dumping of goods into India from China. The government has set up an inter-ministerial import surge monitoring group, as high tariffs on certain countries like China and Vietnam may lead to diversion of goods to India. Chinese retaliatory tariffs on US goods could also increase the inflow of US agricultural products into India.
The US agri exports to India were $1.6 billion in 2024. Key exports include - Almonds (in shell - $868 million); Pistachios ($121 million), Apples ($21 million), Ethanol (ethyl alcohol - $266 million). The US may want to push many such exports. Dairy is another key sector of American interest.
The US remained India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at $131.84 billion, while the country's trade deficit with China widened to $99.2 billion during the same period, government data showed. In the last fiscal, India's exports to China contracted 14.5 per cent to $14.25 billion against $16.66 billion in 2023-24. The imports, however, rose by 11.52 per cent in 2024-25 to $113.45 billion against $101.73 billion in 2023-24.
