3 days ago
‘Trumped' Ludhiana industry holds meeting on tariff blows.
Ludhiana: The Chamber of Industrial & Commercial Undertakings (CICU) has sounded alarm over steep new tariffs to be imposed by the United States on a wide range of Indian exports from August 28, warning that the move could severely hit India's trade competitiveness and lead to job losses.
The issue was discussed at an industrial meeting in Ludhiana, where members urged the government to take steps to negotiate with the US and resolve the dispute on top priority, stressing that once overseas customers are lost, it is very difficult to win them back.
CICU's analysis showed that the US will impose new tariffs of up to 50% on several Indian export categories, pushing total payable tariffs to unprecedented levels.
Knitted apparel, which currently faces a Most Favoured Nation (MFN) tariff of 13.9%, will now be subject to a total tariff of 63.9%. Woven apparel have 60.3% tariff. Textiles 59%, organic chemicals 54%, diamonds and gold products 52.1%, furniture and mattresses 52.3%, steel, aluminium and copper 51.7%, and machinery 51.3%.
Shrimps, carpets, and several other products also fall in the "very high impact" category, while sectors such as petroleum products, pharmaceuticals, and smartphones will see low or no tariff changes.
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CICU members stressed that the government must extend stronger support to the manufacturing sector by reducing logistics costs, offering export incentives of at least 15%, and expanding the production-linked incentive (PLI) scheme beyond large-scale industries to include MSMEs. They called for a dedicated "Mini PLI Scheme" to help small-scale industries adopt advanced technologies and develop import-substitution capabilities.
Sectors proposed for PLI extension include steel, engineering products, textiles, garments, machinery, hand tools, auto components, and furniture. The industry also recommended that exporters be given incentives under a cooperative model to encourage collaboration, pooling of resources, and scaling up production for global markets.
The meeting also highlighted the need for all stakeholders, including raw material suppliers and tier-1 vendors, to make reasonable sacrifices to ensure Indian products remain globally competitive.
The members warned that if the tariff issue was not addressed promptly, it could lead to production slowdowns and unemployment, especially in MSME-heavy industrial hubs such as Punjab's textile, engineering, and bicycle manufacturing sectors.
The meeting concluded with a unanimous appeal to the government to take swift and decisive action to protect India's export momentum, resolve the tariff dispute with the US, and ensure the country's manufacturing and export base remains strong in the face of rising trade barriers.
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