Govt mulls product-specific support to counter US levy

The exact nature of the sops are yet to be determined, although it may be in the form of enhanced outlay for tax remission schemes or marketing support or interest subvention or a judicious combination of these.

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Commerce and Industry Minister Piyush Goyal met exporters from the apparel, engineering, agriculture, food-processing and seafood sectors in Mumbai on Saturday to get their inputs on the impact of tariffs on shipments to the US. The meetings will continue with the leather sector slated to meet officials on Monday.

While the government plans to cushion the impact of tariffs on the products most vulnerable, the talks on the Bilateral Trade Agreement (BTA) continue with a deadline of October-November to conclude the first round. The BTA is expected to reduce or eliminate the cost disadvantage for exporters, as the US tariff for the country may be reduced. Any measures that may be taken will be required for a short period, the sources said.

The duties announced by Trump will be applicable on shipments going out after August 7. Cargoes leaving the ports before the August 7 deadline and received in American warehouses before October 5 will be charged a baseline tariff of 10%.