Key Points

"I think we are still waiting for the final outcome, which is going to come tomorrow. Then we can see exactly how the tariffs are going to be implemented and on which products, " Mehta told ANI.

Trump had announced that India's tariff rate would be effective August 1, but an executive order signed for 69 countries - with India on the list - says the new tariff rates will be applicable from August 7.

"In the first case, it might happen that we are able to charge the 25 per cent to customers, ultimately the cost of the medicine will go up. The second scenario is that companies exporting there have a product mix. What can happen is whichever is the expensive product and whichever is the low-cost product, they might balance between the two. They might pass on some tariffs, and they might absorb others," Mehta said.

"The third thing is all the big companies that are there, they might have warehouses over there, they might be able to transfer goods over there, and they pay the tariffs. The point is that there are possibilities."

The US's move has raised concerns about India's export outlook, as the US is one of the country's largest export destinations. The fresh round of tariffs has sparked fears that Indian products will become more expensive in the US market, making them less competitive compared to goods from other countries, potentially denting demand.

Meanwhile, Congress General Secretary Jairam Ramesh on Friday said India cannot be a "mute spectator" when US President Donald Trump's repeated tariff threats on countries, including India, "destroys" the multilateral trading system established by the World Trade Organisation.

Noting India's stake in international accords and institutions, Jairam Ramesh emphasised that Trump has already "gutted" the World Health Organisation and withdrawn from the Paris Climate Agreement and UNESCO.

"The WTO had been dealt very heavy blows during Trump I. It has been destroyed during Trump II. The rules-based, multilateral trading system put in place with the US itself playing a leadership role has been finished off. The US's approach now is to negotiate--if at all--bilaterally but finally decide unilaterally. President Trump has also gutted the WHO and withdrawn from the Paris Climate Agreement and UNESCO. India has the highest stakes in such international accords and institutions," Congress MP wrote in a social media post on X.

Union Commerce and Industry Minister Piyush Goyal said the Ministry of Commerce and Industry is holding talks with exporters, industries and all stakeholders and gathering information on their assessment of this issue.

- ANI