The Prime Minister's Office has scheduled an urgent high-level meeting for August 26 to address the escalating trade challenges facing Indian exporters as the United States implements doubled tariffs on Indian goods, sources reveal.

The critical session, set to be led by the Principal Secretary to the Prime Minister, comes as Indian exporters brace for the implementation of 50% tariffs on Wednesday, representing a doubling of the previous 25% levy imposed by Washington. This significant increase in trade barriers is expected to severely impact the competitiveness and profit margins of Indian businesses operating in the American market.

The commerce and industry ministry has been actively engaging with exporters and export promotion councils to assess the damage already inflicted by the existing quarter-century tariff structure. Industry representatives report that even the previous 25% duty had substantially compressed profit margins and weakened their competitive position in the US marketplace.

Government officials are exploring targeted intervention strategies rather than implementing sweeping economy-wide relief measures. The focus appears to be shifting toward sector-specific support mechanisms that could provide more precise assistance to affected industries.

While exporters have advocated for an Emergency Credit Line Guarantee Scheme that would provide collateral-free working capital backed by government risk coverage, policymakers are leaning toward more focused sectoral interventions. Officials believe such targeted approaches could deliver more effective results than broad-based programs.

The government's attention is particularly concentrated on protecting small and medium enterprises and export-oriented manufacturing units, which are considered most vulnerable to external economic disruptions. Micro-enterprises have specifically indicated that sector-specific credit facilities with collateral backing would provide meaningful relief.

Cluster-based working capital funding mechanisms are under serious consideration as authorities seek to address liquidity constraints facing exporters. These measures aim to provide immediate financial breathing room for businesses struggling with the increased cost burden.

Tuesday's meeting is anticipated to establish the framework for India's comprehensive response strategy as the business community prepares for the tariff escalation. The doubling of US duties threatens to create significant disruptions across multiple sectors of the Indian economy.

Industries spanning textiles, leather goods, engineering products, and specialty chemicals face particular vulnerability to these trade barriers. The increased tariffs could fundamentally alter supply chain dynamics and force Indian companies to reassess their export strategies for the crucial American market.

The government's intervention underscores the serious economic implications of the deteriorating trade relationship and the urgent need for policy measures to support affected businesses during this challenging period.