US tariff threat raises uncertainty for Indian exporters, industry says
Indian exporters have raised concerns over a new US law that gives President Donald Trump the authority to impose tariffs of up to 100 per cent on goods from major buyers of Russian oil and gas, saying the move could create significant uncertainty for bilateral trade.
Exporters said the actual impact on Indian shipments would depend on the tariff rate ultimately announced by Washington, the products covered and the implementation timeline. The Lindsey O. Graham Sanctioning Russia and Iran Act, signed by Trump on September 18, gives the US administration expanded powers to impose such duties on the top five purchasers of Russian energy. India and China are among the countries exposed to the measure.
Federation of Indian Export Organisations president SC Ralhan said exporters were concerned that very high tariffs could make it difficult for Indian companies to remain competitive in the US market. He said engineering exporters in particular have substantial exposure to America and urged Washington to consider the impact on trade before imposing additional duties.
Technocraft Industries CMD Sharad Saraf said uncertainty itself was affecting business decisions. He added that the eventual impact would also depend on the tariffs imposed on competing exporters such as China and other Asian countries.
Trade Promotion Council of India chairman Mohit Singla also described the development as a major concern, warning that higher duties could affect specific sectors and disrupt established trade ties.
Leather and footwear exporter Rafeeq Ahmed said around 65 per cent of his company's exports go to the US, making any further increase in duties a significant concern for shipments.
The exporters' concerns come as India-US merchandise trade remains substantial. India's exports to the US rose 6.17 per cent to $42.8 billion during April-August 2026-27, while imports from the US increased 29.6 per cent to $28 billion. In August alone, Indian exports to the US rose 21.83 per cent year-on-year to $8.4 billion.
The Global Trade Research Initiative (GTRI) has said the legislation could be used to pressure India over its Russian oil purchases, while arguing that New Delhi should protect its energy-security interests. The organisation has also cautioned that signing a trade agreement would not necessarily shield India from future US tariff measures.
For now, exporters say a clearer assessment will only be possible once the US administration specifies whether, when and at what rate the additional tariffs will be applied.
with inputs from PTI
