NEW DELHI, August 6. /TASS/. The introduction of additional tariffs on India by the US is a serious blow to Indian exports, with Washington’s move expected to directly affect more than half of Indian supplies to the US market, FIEO (Federation of Indian Export Organizations) President S C Ralhan told TASS.
"This move is a severe setback for Indian exports, with nearly 55% of our shipments to the US market directly affected," he said. "The 50% reciprocal tariff effectively imposes a cost burden, placing our exporters at a 30-35% competitive disadvantage compared to peers from countries with lesser reciprocal tariff," the head of the federation added.
Many export orders have already been put on hold as buyers reassess sourcing decisions in light of higher landed costs, he noted. "For a large number of MSME-led sectors, absorbing this sudden cost escalation is simply not viable. Margins are already thin, and this additional blow could force exporters to lose long-standing clients, further," Ralhan said.
The Washington administration has imposed additional tariffs in the amount of 25% on India in connection with its purchase of Russian oil. In addition to the US's decision taken earlier to impose a 25% tariff on Indian goods, the rate for the South Asian republic will now be 50%.
US President Donald Trump said earlier that India always purchased most of its military equipment from Russia, being the largest buyer of Russian energy resources along with China. The Indian Foreign Ministry slammed US and EU attacks on Russian oil imports as unjustified as Western countries used to encourage such trade and continued to purchase goods and services from Russia themselves. The ministry has said that it is extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest, adding that those actions are unfair, unjustified and unreasonable, and that India will take all actions to protect its national interests.