3 days ago
Sharp escalation in U.S. tariffs will hit exporters in Karnataka, especially MSMEs: FKCCI
The Federation of Karnataka Chambers of Commerce & Industry (FKCCI) on Thursday expressed serious concern over the decision by the United States to increase tariffs on certain imports from 25% to 50%.
'This sharp escalation in tariffs will significantly affect our exporters, particularly MSMEs, which form the backbone of India's industrial and manufacturing sectors,' Uma Reddy, senior vice-president, FKCCI, told The Hindu.
With tighter margins and less room to absorb cost shocks, MSMEs were especially vulnerable to such policy shifts, she said, adding, 'the increased duties would make Indian goods less competitive in the U.S. market, potentially leading to a decline in export orders, disruptions in cash flow and a slowdown in production.''
However, Ms. Reddy said that the FKCCI also would like to consider this as a turning point for the Indian industry.
Time to recalibrate
'Tariff hikes, while challenging, push our MSMEs to recalibrate and reduce dependency on a single market. We encourage our members to explore newer geographies, enhance product innovation, and invest in quality and compliance to meet diverse global standards,' she urged exporting MSMEs.
According to Ms. Reddy, this situation brought out by Mr. Trump was an opportunity for India to assert its position as a reliable, agile, and value-driven manufacturing hub.
'We are confident that the Centre will engage proactively and negotiate with the U.S. administration in the days to come, before the new tariffs are implemented. A strategic dialogue at the right time can help safeguard Indian business interests, particularly for MSMEs,'' she said.
Govt. help sought
She also urged the government to support the exporters community through policy intervention, export incentives, and improved logistics and finance access.
'As an apex chamber committed to inclusive growth, FKCCI stood firm with MSMEs in Karnataka in navigating this evolving global trade landscape,' Ms. Reddy added.
