US buyers want Indian exporters to share tariff cost: Report

By Admin

16 Apr, 2025

Tariff Relief with Conditions

In a move that temporarily eases trade pressures, US President Donald Trump recently announced a 90-day break from tariffs for all countries except China. While this announcement sparked hope among global exporters, it comes with strings attached. Despite the break, a baseline tariff of 10 percent remains applicable across the board, in addition to specific levies such as those on steel and the auto sector.

India Still in the Game, But at a Cost

While Indian exporters have seen a resumption of trade for existing orders, there’s growing concern about the future of new deals. According to a recent report dated April 15, US-based buyers are now requesting Indian manufacturers to bear a significant portion—one-third to half—of the baseline tariff costs.

This unexpected shift in buyer expectations has created a new layer of negotiation and financial strain for exporters who were anticipating smoother business flows during this 90-day relief period.

China Faces Continued High Tariffs

It's important to note that China continues to face a heavy 145 percent duty, isolating it from the relaxation offered to other nations. While this gives India and other countries a relative advantage, the demand from US buyers to share tariff burdens diminishes the benefits of the temporary relief.

Experts Voice Concerns Over Buyer Expectations

Industry experts observe that most US buyers are no longer willing to absorb the entire cost of tariffs themselves. Instead, they are increasingly insisting on sharing the tariff burden with sellers, creating friction and financial uncertainties for Indian exporters trying to maintain competitive pricing while protecting their margins.

Conclusion

As global trade recalibrates in light of changing US tariff policies, Indian exporters are caught in a delicate balance between sustaining relationships with US buyers and managing rising export costs. The current scenario highlights the urgency for Indian exporters to rethink pricing strategies, renegotiate terms, and prepare for longer-term shifts in global trade dynamics.