US Tariff Hike a 'Temporary Setback', India Can Explore New Markets: SEA

The 25% tariff imposed by the United States appears to be a "temporary setback" for Indian exports, but could eventually open up new market opportunities as global trade patterns realign, Solvent Extractors Association Executive Director B V Mehta said on Friday.

Speaking on the development, Mehta said the tariff measure should be viewed in a broader context.

"Similar or even higher tariffs have been imposed on competing countries as well. In the long term, such measures often lead to realignments in global trade, which could open up new market opportunities for Indian producers," he said.

The executive director emphasised that India's growing domestic market could serve as a buffer against external trade disruptions.

"India itself is emerging as one of the largest and fastest-growing markets in the world. Strengthening our domestic ecosystem can help absorb external shocks and reduce overdependence on volatile export markets," Mehta noted.

He underscored the critical importance of safeguarding India's agricultural sector amid global trade uncertainties.

"Above all, we must remain firm in our commitment to protecting and promoting our agricultural sector. It is not just an economic pillar but a matter of national livelihood security. Compromising on this front is not an option," he added.

The comments come as Indian exporters grapple with increased trade barriers from key markets, forcing a strategic reassessment of export destinations and domestic market development.