Exporters steel themselves as clock ticks

INDIAN exporters were bracing yesterday for higher US tariffs to kick in as prospects dim for an interim trade deal between New Delhi and Washington before the August 1 deadline.

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This week, US President Donald Trump said India could face a 20-25% rate since a deal had not been finalised, although he added that a final levy was yet to be decided.

While lower than the 26% reciprocal tariffs Washington previously announced in April, that would still represent a leap from the current 10% baseline tariff on Indian shipments to the US.

India, the world’s most populous country, was one of the first few major economies to engage Washington in broader trade talks.

But six months later, Trump's sweeping demands and India’s reluctance to fully open its agricultural and dairy sectors have so far prevented Delhi from sealing a deal that would shield it from punitive tariffs.

“We are also not very hopeful (for a trade deal)... Only a miracle can make it happen,’ Ajay Sahai, director general of the Federation of Indian Export Organisations said.