UP Exporters Face Heavy Losses As US Tariff Forces Order Cancellations

Lucknow: The recent imposition of a 50% tariff by US President Donald Trump on Indian imports has begun to impact Uttar Pradesh’s export sector, with around 20% of scheduled shipments to the United States already cancelled. Industry sources said goods worth crores have been placed on hold, leaving exporters concerned about heavy losses in the coming months.

To offset the damage, exporters are actively scouting alternative markets, particularly countries with which India has signed Free Trade Agreements (FTA). These markets, they believe, could help sustain volumes and margins, especially for sectors where UP has a strong presence such as handicrafts, carpets, and traditional goods.

Manmohan Agrawal, National President of the Association of Indian Manufacturers, said the tariff would hit the state’s MSME sector hardest. “We are working on plans to expand exports to Europe and Middle Eastern nations like the UAE, Bahrain, and Saudi Arabia, where demand for UP’s goods is already high. If these markets absorb more shipments, the impact of US tariffs will be significantly reduced,” he said.

According to Alok Srivastava, UP head of the Federation of Indian Export Organisations, exporters must identify and strengthen trade links with FTA partner nations to keep costs competitive. “These agreements can help us bypass some of the cost pressures caused by the tariffs,” he noted.

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Exporters have also urged the government to provide targeted assistance, particularly to MSMEs, to help reduce production costs. Measures could include subsidised raw material procurement, improved logistics support, and expansion of existing export incentives, enabling Indian products to compete more effectively in price-sensitive markets.

Industry leaders warn that unless alternative markets are tapped quickly, prolonged exposure to high US tariffs could disrupt order books and slow down export growth from the state.