Additional 25% US tariff has Panipat exporters on edge

With the announcement of an additional 25 per cent tariff by US President Donald Trump on Wednesday evening, a total of 50 per cent tariff has raised tensions among Panipat exporters as they would be forced to look for new markets.

The exporters are also worried that with the implementation of the new tariff, the cost of local products would increase, making it tough to compete with the rates at the international level. They urged the government to offer them incentives to save their business.

The ‘Textile City’ has around Rs 20,000 crore export turnover, of which products like carpets and mats account for Rs 10,000 crore annually to the US alone. The US is the biggest market for Panipat exporters as 60 per cent business is with the US.

Surender Mittal, an exporter, said the market situation was uncertain and the tariff announced by the US had upset exporters, especially those who were 100 per cent dependent on US buyers.

This would adversely affect the textile sector, which was the biggest employer in the country, he said.

Vinod Dhamija, Chairman, Haryana Chamber of Commerce and Industries (HCCI), Panipat Chapter, said as per data, 40 per cent of Indian exports was with the US, while in Panipat, 60 per cent was with the US, he said.

At this time, Christmas season supply was on its peak and orders for the summer season were being finalised. But now, the supply would be hit, he said, adding that around 15 per cent of export was of Christmas season and 50 per cent was in the summer season.

No order was received over the past 20 days from US buyers, he said. The exporters were now exploring new markets in South Asia, South America, Europe and other countries, he said.

“The situation would be more critical in the coming days. The government should give incentives to the exporters to save their industries,” he said.

Lalit Goyal, Chairman, Handloom Export Promotion Council (HEPC), and president, Panipat Exporters Association, said it would become very tough for India as the new tariff would increase the cost of Indian products. The duty on Pakistan was only 19 per cent, Bangladesh 20 per cent and Turkey 10 per cent, which were India’s main competitors, he said.

Haryana Tribune