The proposed reciprocal tariff policy by the United States under former President Donald Trump could impact India's exports, depending on its implementation. Trade experts suggest that sector-specific tariffs may affect Indian labour-intensive industries, including furniture, textiles, and footwear, whereas product-specific tariffs may have minimal consequences.
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'If the tariffs apply only to select products, India's exports may not suffer significantly,' experts indicate. However, a broad sectoral approach could increase costs for Indian manufacturers, making products like furniture and home décor less competitive in the US market. The American government currently imposes tariffs ranging from 15-35% on Indian exports in these industries. If additional duties are introduced, Indian businesses may struggle to maintain their foothold in one of their key export markets.
Ajay Srivastava, Founder of the Global Trade Research Initiative, explained that the impact depends on how the tariffs are structured. 'If the US imposes high tariffs on Indian avocados in response to India's tariffs, it won't affect India, as India does not export avocados.' However, a sector-wide approach could harm multiple product categories, including furniture, potentially pressuring India to reduce its own tariffs or take retaliatory measures.
With uncertainty surrounding the final tariff structure, Indian businesses in furniture and interiors must prepare for possible cost increases and supply chain adjustments. Trade analysts advise India to negotiate tariff reductions with the US to safeguard its export interests while maintaining competitiveness in the global market.
Source: www.economictimes.indiatimes.co