Will Additional US Tariffs Affect $48 Billion of India's Exports?
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Synopsis
The potential impact of additional US tariffs on India's exports could reach an estimated $48 billion. As tensions rise, the Indian government is committed to protecting its economic interests and exploring measures to mitigate the effects on trade. This situation raises crucial questions about international trade relations.
Key Takeaways
- $48.2 billion of India's exports may be affected by new US tariffs.
- A 25 percent reciprocal tariff is already in place.
- The government is focused on protecting farmers, workers, and businesses.
- 55 percent of India's exports to the US are impacted by these tariffs.
- No new tariffs have been imposed on pharmaceuticals and electronics yet.
New Delhi, Aug 19 (NationPress) Should the United States implement a supplementary 25 percent tariff on imports from India, approximately $48.2 billion of India's merchandise exports to the US could be impacted, as reported in Parliament on Tuesday.
A reciprocal tariff of 25 percent has already been enacted on various goods shipped from India to the US, effective from August 7.
Additionally, a further 25 percent duty is set to begin on certain goods exported from India starting August 27.
“The government is aware of the tariff actions taken by the US. It is projected that about $48.2 billion of India’s merchandise exports (based on 2024 trade value) to the US will fall under these new tariffs,” stated Jitin Prasada, Minister of State for Commerce and Industry, in a written response to a parliamentary inquiry.
He emphasized that the government is dedicated to safeguarding national interests and ensuring the welfare of farmers, workers, entrepreneurs, exporters, MSMEs, and the broader industry. The government will implement all necessary actions to alleviate the adverse effects on trade, which may include appropriate export promotion and trade diversification strategies.
Approximately 55 percent of India's total merchandise exports to the US are now subject to the initial 25 percent reciprocal tariffs.
Currently, no additional tariffs have been applied to Indian exports in sectors such as pharmaceuticals and electronics.
The minister explained that the repercussions of reciprocal tariffs on India's exports, especially in the textiles sector, will depend on various factors like product differentiation, demand, quality, and contractual agreements.
New Delhi has consistently asserted that the recent tariff measures by US President Donald Trump are unfair, unjustified, and unreasonable. The government has reiterated that its imports are driven by market dynamics and aim to ensure the energy security of India’s 1.4 billion citizens.
Point of View
It is crucial to approach these developments with a balanced view. While the imposition of tariffs by the US presents challenges, it also serves as a reminder to strengthen internal markets and diversify trade partnerships.
NationPress
19/08/2025
Frequently Asked Questions
What is the potential impact of US tariffs on India?
If additional tariffs are imposed, approximately $48.2 billion of India's merchandise exports to the US could be affected.
When will these tariffs take effect?
The initial 25 percent reciprocal tariff has been in effect since August 7, with further duties starting August 27.
Which sectors are currently exempt from additional tariffs?
As of now, no additional tariffs have been imposed on Indian exports in sectors like pharmaceuticals and electronics.
How is the Indian government responding?
The government is taking steps to safeguard national interests and protect the welfare of various stakeholders in the economy.
Why are these tariffs deemed unjust by India?
The Indian government views the recent tariff actions as unfair, unjustified, and unreasonable, asserting that imports are based on market factors.
