New Delhi, April 10: The temporary relief on the US reciprocal tariffs front gives businesses and India vital space to stabilise supply chains and adapt operations, while also providing policymakers an opportunity to work toward more sustainable trade agreements, industry experts said on Thursday.
US President Donald Trump has announced a lower rate of 10 per cent for 90 days in reciprocal tariffs for trading partner countries that have not retaliated with higher levies on American goods — such as India — and further hiked the levy on China to 125 per cent for hitting back.
“President Trump’s 90-day pause on tariffs for India and several other countries reflects a tactical recalibration rather than a fundamental policy shift — but it’s a welcome development from both US consumers and global geopolitics perspectives,” said Ashok Chandak, President of SEMI IESA.
While this pause opens the door to reassess global trade dynamics, underlying tensions and uncertainty persist due to the existing 10 per cent baseline tariff on most US imports and what comes after 90 days, he mentioned.
The move of imposing country-specific tariffs is a significant development in the context of the global trade landscape. “The impact goes beyond tax and may lead to disruption of supply chains, business models, and could potentially pause existing investment and business plans,” said Prashant Bhojwani, Partner, Tax and Regulatory services, BDO India.
“In the short term, a slowdown in international trade could be likely as rising consumer prices impact demand and consumption patterns. In this context, the businesses would need to reassess and, if necessary, re-invent supply chains and business models to build in cost efficiencies,” he added.
Meanwhile, Union Minister of Commerce and Industry, Piyush Goyal, held discussions with the Export Promotion Councils and industry bodies here in the light of the emerging trade scenario. The meeting was called to deliberate on the impact as well as opportunities arising out of the evolving and very dynamic scenarios and to apprise the industry and trade about the steps being taken by the government.
The minister complemented the exporters and the industry for achieving the highest-ever export of more than $820 billion in the fiscal 2024-25, which is nearly 6 per cent growth over previous fiscal year.
IANS