Exporters to seek support of government for workers losing jobs

NEW DELHI: Amid expectations of job losses due to higher tariffs, exporters are seeking support for workers who would be hit by the impact of US President Donald Trump’s actions.At a meeting of export promotion councils convened by the federation of indian export organisations on Monday, most businesses suggested that a package from the Centre should be sought for workers.One of the suggestions was to seek a Covid-type package, which covered their social security benefit and provided some other assistance to reduce the burden on employers.A second proposal is to use the opportunity to upskill workers, for which a monthly govt support of Rs 15,000 is likely to be sought.While exporters are working with clients to see how they can navigate through the crisis, the dominant view in the community is that orders from American buyers will stop if Trump goes ahead with his plan to impose another 25% additional tariff on Indian exports to the US, taking the total levies to 50%.

There have been suggestions that govt should cover part of the additional tariff burden, but even exporters realise that it is tough to implement.Besides, government is unwilling to immediately act on the demands, arguing that it would rather wait for the tariffs to be imposed as several developments are taking place around the globe, including talks between Russia and the US over finding a solution to the Ukraine conflict.

In addition, it was pointed to exporters that shipments to the US have grown by 21% during April-July, as reported by TOI on Monday, while overall goods export growth is to the tune of 3%. This is largely due to frontloading of orders by Indian exporters, who are keen to avoid additional duties.