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Key Points

The US plans to impose 25% tariffs on $48 billion of Indian exports, risking major sectors like textiles. India’s commerce minister assured Parliament of protective measures for farmers and MSMEs. While pharmaceuticals and electronics remain unaffected, New Delhi criticized Trump’s move as unreasonable. The government aims to counter the impact through trade diversification and export promotion strategies.

Key Points: US Tariffs Threaten $48B of India Exports as Govt Vows Protection

  • US tariffs target 55% of India’s exports including textiles
  • Pharma and electronics spared for now
  • Govt plans export promotion and diversification
  • New Delhi calls Trump’s tariffs unfair and unjustified
2 min read

Additional US tariffs to impact $48 billion of India's exports, govt to safeguard trade: Minister

India warns of $48B export hit from new US tariffs, pledges trade safeguards and diversification to protect key sectors like textiles and MSMEs.

"The government will take all necessary steps to mitigate trade impact – Jitin Prasada, Commerce Minister"

New Delhi, Aug 19

If America imposes additional 25 per cent on India, around $48.2 billion of India’s merchandise export to the US is likely to be subject to those tariffs, the Parliament was informed on Tuesday.

Reciprocal tariff at the rate of 25 per cent has been imposed on certain goods exported from India to the US, starting from August 7.

Further, additional rate of duty of 25 per cent with effect from August 27 has been imposed on certain goods exported from India.

“The government has taken note of tariff imposition by the US. It is estimated that around $48.2 billion of India’s merchandise export (based on 2024 trade value) to the US will be subject to the above additional tariffs,” Minister of State for Commerce and Industry Jitin Prasada said in a written reply to a question in Lok Sabha.

He further said that the government is committed to secure and advance country’s national interest and protect the welfare of our farmers, workers, entrepreneurs, exporters, MSMEs and all sections of industry and “take all necessary steps to help mitigate impact on trade including through appropriate export promotion and trade diversification measures”.

It is estimated that around 55 per cent of the total value of India’s merchandise exports to the US is subject to the 25 per cent first line of US reciprocal tariffs.

No additional tariffs have been imposed on Indian exports to the US in sectors like pharmaceuticals and electronics as yet.

According to the minister, a combination of different factors, such as product differentiation, demand, quality, and contractual arrangements, would determine the impact of reciprocal tariffs on India’s exports, including in the textiles sector.

New Delhi has reiterated that the latest tariff actions by US President Donald Trump are "unfair, unjustified and unreasonable". "We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India," the government had said in a statement.

- IANS

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Reader Comments

P
Priya S
At least pharmaceuticals and electronics are spared for now. These are our growing sectors and we should focus on strengthening them further. Time to diversify our export basket!
A
Aman W
$48 billion is huge money! This will definitely impact our forex reserves. Government should negotiate better trade deals and not just react after damage is done. We need proactive diplomacy.
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Sarah B
As someone working in export business, this is really worrying. Many of our contracts with US clients will become unviable with 25% additional duty. Hope the government's mitigation measures come quickly.
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Vikram M
This is the right time to focus on other markets like EU, Middle East and African countries. Over-dependence on any single market is always risky. Make in India should also mean Sell to World! 💪
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Michael C
While the tariffs are unfair, we should also look at why we're facing them. Maybe our trade policies need revision too. Balanced approach is needed rather than just calling everything "unjustified".
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Nisha Z
Hope the government's export promotion measures reach the actual MSMEs who need them most. Often big companies get all the benefits while small exporters struggle. Jai Hind! 🙏

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