Shifting Back To China? Piyush Goyal Urges Industry To Explore Alternatives To US Amid Trump’s Tariff Pressure: Report

The Ministry of Commerce and Industry has asked domestic industries to identify sectors where imports from China and other countries can be replaced with American goods, according to a report by The Indian Express.

The development comes just days after US President Donald Trump criticised India’s high tariffs in key sectors such as automobiles and agriculture and vowed to enforce reciprocal tariffs from 2 April onwards.

The report highlights that the Indian government is working on a broader strategy involving tariff rationalisation and enhanced market access in order to shield its exporters from the fallout of sweeping US trade measures.

In a meeting held on Thursday (13 March), Commerce Minister Piyush Goyal reportedly told industry representatives that the government is working to protect exporters’ interests while simultaneously pursuing multiple strategies to ensure the best outcomes for Indian exporters as per report.

He also urged stakeholders to break away from a “protectionist mindset” and “be bold” in seizing new trade opportunities arising from shifting global alignments.

Steel and aluminium exporters, particularly from the MSME sector, raised alarms during the meeting. According to the report, industry insiders also informed the ministry that nearly $5 billion worth of exports have already been affected by the US’s 25 per cent tariff on these metals, which came into effect earlier this week.

Pankaj Chadha, Chairman of the Engineering Export Promotion Council (EEPC) India, was quoted saying, “The Micro, Small and Medium Enterprises (MSME) sector is particularly concerned, as exports worth $5 billion have been hit by Trump’s recent tariffs. Total exports under Chapters 72/73/76 amount to $5 billion. Chapter 73, covering iron and steel products, accounts for $3 billion and is primarily driven by MSME exporters.”

Chadha added that “since the voyage time to the US is around 60 days, about $1 billion worth of shipments are currently on the high seas and will be affected by this duty.”

The government is also reportedly considering specific market access offers to the United States in sectors such as textiles, electronics, carpets, and gems and jewellery.

The textile sector is said to be open to offering zero-duty access to US products. However, representatives from the gems and jewellery sector have suggested retaining a minimum 2.5 per cent duty on cut and polished diamonds, down from the current 5 per cent.

Despite concerns over tariff impacts, several exporters pointed out that the situation could also open new opportunities for Indian suppliers.

Businesses reported that India is beginning to receive higher export orders as traditional US suppliers like China, Mexico and Canada face steeper tariffs.

“Apart from agriculture and a few other sectors, these tariffs could work in India’s favour, as we produce goods at much lower costs than the US. Even if tariffs are reduced for the US in certain segments, competitiveness is what matters,” one participant reportedly told the publication.