Delhi Traders View US Tariff Hike as Temporary Setback, Urge Government Support for Exports

Trade associations in Delhi have voiced their concerns over the United States' recent decision to increase tariffs on Indian goods to 50%. They believe this move will only have a temporary impact, as India is expected to seek new markets and boost its domestic competitiveness. The Federation of Sadar Bazar Traders Association (FESTA) criticised the decision, calling it both unfair and unwise.

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US President Donald Trump announced the tariff hike, which took effect on Wednesday, citing India's purchase of Russian crude oil as a reason. This additional 25% levy comes after an earlier 25% tariff imposed this month as part of a wider trade crackdown affecting around 70 countries. Trump had provided a 21-day period for negotiations, which ended on Tuesday.

Trade Associations Respond to Tariff Increase

The Gandhi Nagar Market Association described the disruption as temporary. "This is only a short-term problem as our exports will be routed to other countries," said the association's President Naresh Sikka. He added that traders are confident better alternatives will be found under Prime Minister Narendra Modi's policies.

Khan Market Traders Association also weighed in, highlighting India's significant contribution to the US economy. "Such decisions must be taken with reflection, not impulsively," stated its President Sanjiv Mehra. He acknowledged initial pressures but expressed optimism that India's exports would grow over time.

Calls for Government Support

FESTA Chairman Paramjit Singh Pamma warned that these tariffs could lead to a trade war between the two nations. The association urged Prime Minister Modi to provide maximum relief to traders through GST adjustments and low-interest loans to keep domestic products competitive.

Ritesh Jitani, General Secretary of Kirti Nagar Market Association, noted that reliance on imported machinery might pose short-term challenges. However, he believes that the push towards self-reliance will ultimately benefit the sector.

The associations remain hopeful that India will navigate these challenges effectively by exploring alternative markets and enhancing domestic capabilities. They continue to advocate for government measures that support traders during this period of adjustment.

With inputs from PTI