Trump’s reciprocal tariff raises concerns of Panipat exporters
The reciprocal tariff on Indian exports announced by US President Donald Trump has raised concerns of exporters in the ‘textile city’ of Panipat. With the announcement of the new tariff, the overseas buyers have started sending mails to the exporters in Panipat to hold orders till the situation became clear.
What is Panipat’s export volume to the US?
Globally, Panipat has around 18,000 crore turnover of export, of which, around 60 per cent trade is with the US. Around 400 exporters in Panipat export products, especially carpets, bath mats, floor top items, cushions, cushions covers, bed covers, rugs and other products worth Rs 10,000 crore.
How will Trump’s tariff impact the Panipat industry?
US President Donald Trump announced a 26 per cent reciprocal tariff on Indian exports, which has shaken the Panipat export industries. Vinod Dhamija, Chairman, Haryana Chamber of Commerce and Industries (HCCI), Panipat Chapter, said the new tariff would hit the textile industry badly. Panipat products were luxurious items. The price would be increased with the new tariff, after which the sale would definitely be affected. He said, for business in the US, there were four seasons — spring, late spring, harvest and Christmas. Panipat’s exporters were busy shipping the consignments for the harvest season while the Christmas season’s meeting would begin in the coming days. He said the tariff would hit the Christmas season this year badly.
How will Egypt and Turkey become big competitors for India?
US President Trump has announced 26 per cent reciprocal tariff on India while the US has announced only 10 per cent tariff for Turkey and Egypt. Turkey and Egypt are exporting machine-made bath mats and floor top materials to the US. Now, the Indian products would be sold for higher rates after the tariff is announced while Turkey and Egypt would supply the same products at minimal price in comparison to India. However, one more important factor is that Trump announced a higher reciprocal tariff on Vietnam, Bangladesh, Pakistan and China, which were the biggest competitors for Panipat industries. Bangladesh and China were a big challenge to the industries here. But, with this new tariff they won’t be able to compete with India in the USA.
What impact will it have on the industrial labour?
Sunil Dutt, state secretary and district president, Centre of Indian Trade Union (CITU) said the tariff would drastically hit the Panipat export industries, which was already reeling under a crisis due to the Ukraine-Russia war. After the implementation of the new tariff on Indian exports the prices would rise. The sale would be affected and overseas orders would be reduced. After which the production would also get hit in the industries due to which the labourers may face retrenchment.
What Next?
Lalit Goyal, chairman, Handloom Exports Promotion Council (HEPC), said the new tariff would definitely hit the Panipat’s export industry. After the implementation of the new tariff, the product cost would likely rise up to 25 to 30 per cent. The HEPC has called a meeting of exporters on April 7 to discuss the issue, share their views, inputs and suggestions and after that these would be presented to the ministry concerned for further deliberation.
Haryana Tribune