The high tariff in the United States endangers $ 48 billion of Indian exports, and Fieo seeks to urgent government work

The United States will impose an additional 25 % tariff on Indian goods, which greatly increases the total fees in many export categories to up to 50 %, effective from August 27, 2025. This step constitutes a severe disruption of Indian export, affecting a large part of India’s shipments to the United States. The FIEO Union (FIEO) has sparked warnings of the potential influence, noting that this increase in customs tariffs can strongly hinder the competitive edge of India in the American market, which is the largest destination for Indian exports.

The main production centers, such as Tirupur, Noida and Surat, have started experimenting with repercussions, as fabric manufacturers and production clothes stopped due to the low competitiveness of the cost. The seafood industry, especially the shrimp sector, faces the risk of inventory losses and the disruption of the supply chain, given that the American market represents about 40 % of Indian seafood exports. Likewise, the intense sectors of workers such as leather, ceramics, chemicals, handicrafts and carpets are witnessing an increase in competition from European producers, Southeast Asia and Mexican.

Fieo SC Ralhan President stressed the urgent need to support the government to alleviate these harmful effects. Suggested measures include sub -benefits plans and export credit support to maintain liquidity and working capital. Moreover, Mr. Rahan suggests that access to low -cost credit, especially for MSMES, with the help of banks and financial institutions, is very important. It also calls for a single year endowment to pay the loan and call for hypothesis of guarantees to reduce the financial tension of companies.

FIEO’s additional strategies focus on strengthening India’s competitiveness through extensive production incentives (PLI) and infrastructure improvements. There is also a boost to diversify the market through the rapid trade agreements with regions such as the European Union, the Gulf Cooperation Council countries, and Latin America. However, FIEO emphasizes that diplomatic participation with the United States is still decisive in addressing the tariff issue, which poses great risks to the Indian economy.

Another part of the FIEO strategy includes Brand India strengthening and innovation to enhance the global call. This includes investing in quality certificates and including innovation within export strategies, making Indian goods more attractive on the international stage. This comprehensive strategy aims to protect livelihoods and secure India’s foothold in the global export market despite the ongoing challenges offered by the American definitions.

Fieo calls for a coordinated response between exporters, industry groups and government agencies to move in this difficult period. The measures taken now will play a pivotal role in determining India’s flexibility of external economic shocks and its ability to re -establish itself in the global scene of export.