US tariffs to impact Indian exports in short term: Commerce Ministry

The Commerce Ministry on Thursday said the recent imposition of 50 per cent tariffs by the United States will have a short-term impact on India’s exports, particularly in sectors such as textiles, chemicals, and machinery. However, it asserted that the long-term effect on overall trade and GDP will remain limited.”It is understood that 50 per cent tariffs are going to impact trade, especially the sectors on which tariffs are there. They will suffer some trade loss in the US. There will be an impact on textiles, chemicals, machinery, etc. for the short run, but it will not be a very long-term loss,” a senior Commerce Ministry official told a news agency.

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The official acknowledged that industry bodies have expressed concern over liquidity constraints due to slowing orders and delayed payment cycles. “In the short run, their orders will slow down. The money that they have to get back from their exports will also slow down. So they will face some liquidity crunch and will be under financial strain to run their operations,” the official said.According to the official, several indust