PMO to Hold High-Level Meeting on U.S. Tariff Hike

The Prime Minister’s Office (PMO) will on Tuesday, August 26, chair a crucial meeting to decide India’s strategy after the United States announced a steep hike in tariffs on Indian exports. The decision comes as Washington prepares to double import duties on Indian goods to 50 percent, up from the existing 25 percent, effective from Wednesday, August 27.

The meeting, to be led by the Prime Minister’s Principal Secretary, will bring together top officials from the Commerce and Industry Ministry along with representatives of export councils. According to officials, the discussions will focus on formulating targeted relief measures to help sectors most impacted by the tariff escalation.

Instead of adopting broad, across-the-board remedies, the government is considering sector-specific interventions to support exporters. The Commerce Ministry has been consulting industry bodies and exporters, who have demanded measures such as the Emergency Credit Line Guarantee Scheme (ECLGS), a collateral-free working capital facility backed by government guarantees. While this proposal is under review, the government appears more inclined toward creating cluster or industry-based financial support mechanisms.

Particular attention is expected to be given to small and medium enterprises (SMEs), which are more vulnerable to external shocks and global disruptions. Export-oriented industries such as textiles, leather, engineering goods, and specialty chemicals are anticipated to be among the hardest hit by the tariff hike.

Officials said the meeting’s outcome will likely set the framework for India’s official response, balancing immediate relief for exporters with long-term trade considerations. With the tariff increase set to come into force within 48 hours, the government is under pressure to act swiftly to shield businesses and minimize disruptions in international trade.