Government Plans Support Measures For Exporters Hit By Trump’s 25% Tariff

The Indian government is exploring support measures to mitigate exporters from the impact of a 25 per cent import duty on Indian goods announced by US President Donald Trump. The duties, set to take effect from August 7, have raised concerns across sectors of textiles, chemicals, footwear, shrimp, and leather.

The commerce ministry has held consultations with stakeholders from various industries, including food processing, steel, and agriculture, to assess the expected impact. Exporters have demanded interest subvention, revival of the Interest Equalisation Scheme (IES), and timely extension of export rebate schemes like RoDTEP and RoSCT, PTI reported

The PM Viksit Bharat Rozgar Yojana and Export Promotion Mission (EPM) are expected to offer additional relief. As per PTI, exporters also suggested increasing tax refund rates under RoDTEP and RoSCTL to maintain competitiveness against countries with lower tariffs and interest rates.

While Indian leather exports to the US have grown in 2025, exporters warn that without timely support, market access could be compromised. The government aims to provide sector-specific incentives while continuing negotiations with the US, with the sixth round of Bilateral Trade Agreement talks scheduled to begin August 25.