As shipments resume, US buyers want Indian sellers to split higher tariff cost

Days after the 90-day pause on America's country-specific reciprocal tariffs kicked in, exporters are seeing a resumption of outbound shipments to the United States (US) on the basis of existing orders although the fate of fresh orders remains uncertain.

- SHREYA NANDI

With the US now imposing a 10 per cent import tariff on all its trade partners except China, American buyers are asking Indian sellers to absorb one-third to half the additional tariff imposed, exporters said.

In sectors such as apparel, sellers are trying to utilise the 90-day window to send their shipments to the US before July 9.

For tailor-made items, production and shipping products in three months remain a challenge, they said.

Last week, US President Donald Trump put on hold the decision to impose high "reciprocal" tariffs, which were 26 per cent in the case of India.

On April 9, just hours before implementation, the country-specific reciprocal tariffs for 90 days were halted — except for China — amid growing concerns over recession and inflation.