Import Monitoring Group Formed to Track Rising Imports

08-Apr-2025 03:15 PM

New Delhi: With several countries potentially redirecting exports to India due to the US’s new tariff policy, the Union Commerce Ministry has formed an Import Monitoring Group (IMG) to monitor and manage any surge in imports.

The biggest concern for India is a sharp rise in imports from China. The US has already imposed a 34% import duty on Chinese goods, and in retaliation, China has imposed the same on US products.

If China does not roll back the tariff by April 8, the US may increase the duty to 50% on April 9. This could push China to target India and African countries as alternative markets.

Other countries facing high US tariffs, like Vietnam, may also seek to increase exports of cashew, black pepper, and coffee to India. To prevent unnecessary imports, the government is taking precautionary steps.

The newly-formed IMG will comprise officials from the Departments of Commerce, Revenue, Industrial Promotion, and Internal Trade, and will work closely with product-specific ministries. These ministries may be advised to take appropriate action if any significant import spike is observed.

The real impact of this global tariff shift on Indian imports is expected to become visible around June–July. The first phase of US tariffs is already in effect, with the second phase likely from April 10.