States Rejig Policies, Seek Centre's Help to Counter Trump Tariffs

From Andhra to TN and Gujarat, states fear heavy biz losses. Archis Mohan reports

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The government of Tamil Nadu, which exported 31 percent of its total shipments worth $52.1 billion to the US in FY25, fears massive job losses once the additional 25 percent tariff takes effect on August 27. The state has sought the Centre's help, as have several other states, including Andhra Pradesh.

From Uttar Pradesh to Telangana, Kerala to Rajasthan, Gujarat to Tamil Nadu, state governments are reworking their export promotion policies and exploring ways to quickly look for newer markets.

State governments have requested the Centre for export incentives, lifting of import duty in the case of cotton for the textile sector and goods and services tax (GST) exemptions. Some have written to the Centre to look at the Brazilian model, which has announced tax deferrals and tax credits for exporters.

State governments have also consulted with exporters and other stakeholders that will suffer once the additional 25 percent tariff—Washington's sanction on Indian goods for New Delhi's purchase of Russian oil—comes into force.

On August 20, Andhra Pradesh Minister for Real Time Governance, Nara Lokesh, consulted with the state's marine exporters. According to the presentation of the state's fisheries department at the meeting, shrimps from Ecuador and Thailand will be almost 40 percent cheaper than those from India. Shrimps from Indonesia and Vietnam will be 35.36 percent and 9.66 percent cheaper, respectively.