New Delhi, 10th April 2024: US President Donald Trump has announced on a 90-day ‘pause’ on reciprocal tariffs for all but China, which were set to be applicable from 9th April 2025. During this period a substantially lower reciprocal tariff of 10% which will be over and above the existing duties, fees, taxes, exactions, or charges applicable will be in place.

Reacting to the development, CITI Chairman Shri Rakesh Mehra stated, “The temporary relief will bring short-term respite to Indian textile and apparel (T&A) exporters, who were bracing for higher tariff barriers. However, this measure is only a stopgap. It is crucial that the Government of India intensifies its engagement with U.S. counterparts to arrive at a more sustainable and mutually beneficial solution.”

Highlighting the importance of the U.S. market, he added, “The United States is the largest destination for Indian T&A exports. While the Government is actively pursuing bilateral negotiations for better tariff access, the industry urges the Government to consider introducing an interim Textile Exports Protection Scheme. Such a measure would help mitigate the impact of additional tariff costs, particularly given the wafer-thin margins that T&A exporters operate on.”

Shri Mehra also pointed out that the ongoing trade tensions between the U.S. and China present a strategic opportunity for India. “With the U.S. looking to diversify its sourcing away from China, India has the potential to emerge as a reliable alternative. However, this will require proactive diplomacy and a concerted effort to secure a more favourable and stable tariff regime,” he emphasized.