US tariff threats hit Indian exports in February: Govt – The Tribune

Indian exports in February were impacted by US tariff threats, a government source said. India is considering offering incentives to exporters amid global uncertainty, with a decision expected within a month, according to Reuters.

After a meeting between Trump and Indian Prime Minister Narendra Modi last month, the two countries agreed to resolve traffic rows and work on the first segment of a deal by the fall of 2025, aiming for bilateral trade worth $500 billion by 2030.

Union Finance Minister Nirmala Sitharaman on Thursday said that the impact of the US tariffs will be felt on India.

For context, On February 18, US President Donald Trump outlined a new trade policy focused on fairness and reciprocity and said that the US would implement reciprocal tariffs, charging other countries the same tariffs they impose on American goods.

Trump emphasised that this approach would address unfair trade practices, including non-monetary barriers, subsidies, and VAT systems to encourage foreign countries to either reduce or eliminate tariffs against the US or set up their manufacturing base in the US which will add to its growth in the long term.