Our Bureau
Mumbai
The exporters are facing heavy challenges after the recent imposition of heavy tariffs from the President of the United States Donald Trump. Several banks from India have now increased scrutiny over the new loan applications given by the exporters.
As per the reports, the banks have begun asking exporters how much they are exposed to the American market. They have also been asked to present their contingency plans going forward to battle the heavy import duties introduced by Trump.
Lenders are now asking more pointed questions from the borrowers when they are examining new financial proposals or renewing any funding related to them. The banks have been assessing the financial ramifications of the punitive levies on their clients, heavily focusing on the sectors dependent on exports such as textile, gem and jewellery sectors.
Reports have even suggested that there are some export orders that have been put on hold as there are still trade negotiations happening between the US and India and will be on hold till the negotiations play out. This has been done following the shocking decision taken by Trump to double the import duties on India.
Trump has shocked everyone as in just a span of one week he has doubled up the import duties on India after warning the country to cease the import of Russian crude oil. Earlier the tariffs were 25% but since the country didn’t cut ties with Russia, it has been penalised with a 25% levy and now the cumulative tariffs that India will have to pay is 50%.
This sudden hike in tariffs have sent businesses into a frenzy as they worry it will make Indian exports exponentially expensive and disrupt their shipments to the US. The industries hit hardest have requested the Central Government to aid them with some measures so that they cope with the new trade barriers.
