‘This will break our backs’: Exporters WARN 50% us tariff will wipe out margins, CRIPLE TRADE – CNBC TV18

With the us set to impose a 50% tariff on select Indian expenses from August 27, Industries LIKE Textiles, Apparel, Leather, Jewelery, Jewelery, and Seafood – Together Worth Nearly $ 47 Billion $ 47 Billion in Annural Trade -face a sharp blow. Exporters warn that the steep duty will make Indian products uncompetitive and shift orders to rival markets such as such as vietnam and bangladesh.

Sudhir Sekhri, Chairman of the Apparel Export Promotion Council (AEPC), Made it clear that the Apparel Industry Simply Cannot Shoulder This Additional Burden. “Our Apparel Exports Alone are Worth $ 5.2 Billion, and this could mean an out-of-page impact of Nearly $ 675 Million,” He said.

According to Sekhri, Exporters Had Alredy Managed to Negotiate and Absorb The Earlier 25% duty, but an extra 25% on top of that would ‘break our backs’. He urged the government to release pending incinent funds-₹ 2,250 Crore sanctioned but not disbursed -nd to consider scrip-based subsidies to Cushion the loss. He explained that Such Tradable Scrips Cold Offset Import Duties and Give Exporters Short-Term Relief.

Echoing the Concern, S Ganapathi, Vice Chairman & MD of Gokaldas Exports, Warned of a Bigger Risk -The Possibility of India Losing its foothold in the us market. “If a 50% duty stays, brands will gradually move business to other countries.

Also read: S & P upgrade lifts sentiment, but tariffs and fiscal risks May Temper India’s Outlook, Say Economists

Ganapathi added that Pivoting to Alternative Markets Takes at Least A Year or More, Making ImmediaTe Support Critical. He also stressed that micro, small and medium enterprises (msmes), which form a large share of expenses, cold struggle to survive without working capital reliafe or easier financing. While Tariff-Linked Assistance is Urgent, Ganapathi Stated that Structural Reforms to Improve Ease of Doing Business are Necessary Anyway for Long-Term Competitiveness.

Also read: India’s Exporters Rush to Beat US 50% Tariff Deadline, Face $ 11.5 Billion Loss Risk, Say Industry Experts

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