An article from Business Line states that India’s exports to the U.S., particularly in labor-intensive sectors like garments, gems & jewelry, handicrafts, seafood, and leather, will be severely impacted if the U.S. doubles its tariffs to 50%. The Commerce Department has consulted with various sectors, and exporters fear they may lose some of their U.S. buyers for good if the additional tariffs are imposed.
The government is working on a relief package under the Export Promotion Mission to provide credit and other incentives. Export promotion councils for handicrafts, apparel, and leather have urged the government to intervene swiftly with fiscal and diplomatic measures. U.S. officials have indicated that Washington is inclined to implement the higher tariffs, which are linked to India’s continued purchase of Russian oil.