New Delhi, July 24, 2026 (Yes Punjab News)
The Federation of Indian Export Organisations (FIEO) on Friday said the additional 10 per cent Section 301 tariff imposed by the United States on imports from India is unlikely to significantly affect the country’s export competitiveness, as several competing exporting nations face similar or even higher tariff rates.
FIEO President S.C. Ralhan said the increase would raise the landed cost of Indian products in the US market, but its overall impact should be assessed in comparison with tariffs imposed on rival supplier countries.
According to FIEO, India has been placed in the lower 10 per cent tariff category, while countries such as China, Vietnam, Thailand, Türkiye, the UAE, Brazil and South Africa have been subjected to a higher tariff of 12.5 per cent. The organisation said this reflects the US recognition of India’s efforts to strengthen its framework on forced labour.
Ralhan noted that India’s major competitors in labour-intensive sectors, including Bangladesh, Cambodia, Pakistan, Sri Lanka, Indonesia and Malaysia, also face the same 10 per cent tariff. As a result, Indian exporters are expected to retain their relative competitiveness in sectors such as textiles, garments, leather and footwear.
He added that Indian exporters could also benefit from trade diversion in product segments where competing countries face the higher 12.5 per cent tariff, as even a 2.5 per cent duty difference could influence sourcing decisions.
FIEO also pointed out that several key export categories, including steel, aluminium, auto components, pharmaceuticals, pharmaceutical ingredients and certain agricultural products already covered under Section 232 measures, continue to enjoy exclusions from the latest tariff.
The exporters’ body advised businesses to assess the impact on a product-wise basis, strengthen supply chain compliance and continue investing in quality, innovation and value addition to remain competitive in the US market.
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