US operationalises 10% global tariffs

INDIAN PRODUCTS CLEARING US customs from Tuesday onwardswill be subject to 10% duties instead of 50% when the contracts were negotiated, opening doors for some kind of arelief even for cargoes on seas.

- MUKESH JAGOTA

While immediate windfall will be for the importer who would have to pay 40% less tariffs, some of it may be passed on to Indian sellers.

“Many exporters had an understanding with the buyers while negotiating contracts at very thin margin or even loss that benefit from change in duties would be shared with them too,” CEO and Director General of Federation of Indian Export Organisations (FIEO) Ajay Sahai said.

The transit time for the US ports ranges from 45-60 days. So, at any given point of time one-eighth of annual exports to the US of $10-12 billion are on seas so the benefit could be considerable if importers share the benefit of lower duties, he added.