Trump's tariffs cloud India's March exports

Subscribe to enjoy similar stories. New Delhi: Key Indian exports may have started cooling even before US president Donald Trump’s reciprocal tariffs roll out. Worried that higher levies may kick in by the time products land on American shores, local exporters are hesitant to ship engineering goods to the US, according to industry representatives.

The delay means outbound shipments for the category, which accounts for about a quarter of India’s merchandise exports, are expected to decline in March. Sea freight, the most common method for bulk overseas trade, typically takes between 25 and 45 days to reach the US. “The concern is that if new tariffs are introduced while goods are in transit, businesses will have to bear the impact of revised duties, which is a significant challenge," said Pankaj Chadha, chairman of the Engineering Export Promotion Council (EEPC).

“The easiest solution would be a bilateral deal, but there is no chance of it happening before 2 April." India's agriculture, diamond and gold, and medical devices are the most at risk from reciprocal tariffs because of the disparity between the duties levied in the US and India. Still, Trump's protectionist measures have set off global uncertainty, which is weighing on overall trade. Also read | India, US move on trade deal, no talks on reciprocal tariffs Merchandise exports fell 11% on-year last month to $36.91 billion—below 41.41 billion recorded in February 2024, when supply chain disruptions due to the Red Sea crisis had impacted trade.

Merchandise imports, too, dropped 16.34% in February over a year earlier. Queries emailed to the spokesperson of the ministry of commerce remained unanswered. “As we are in a highly uncertain environment, and the US remains