Additional US Tariffs to Impact $48 Billion of India’s Exports, Govt to Safeguard Trade, says Jitin Prasada

If the United States imposes a further 25 per cent duty on Indian merchandise exports, almost $48.2 billion of India's merchandise exports are likely to be impacted, the government informed Parliament on Tuesday.

The Ministry of Commerce and Industry reported that, in retaliation, India has also levied matching tariffs of 25 per cent on certain US items from August 7, and another round of tariffs kicked in on August 27.

Minister of State for Commerce and Industry Jitin Prasada, while giving written response to the Lok Sabha, pointed out: "The government has taken cognizance of tariff imposition by the US. It is estimated that about $48.2 billion of India's merchandise export (based on 2024 trade value) to the US will be affected by the above additional tariffs."

He emphasized that New Delhi is still committed to protecting national interests and providing well-being to farmers, workers, MSMEs, exporters, and industry in general. He also added further that efforts would be made to offset the effects of rising tariffs, including by way of aimed export promotion and trade diversification efforts.

Based on estimates, almost 55 per cent of India's entire exports to the US are already under the bilateral tariff regime. But sectors of strategic importance like drugs and electronics have not been attacked with added duties yet.

Prasada underlined that the actual impact of tariffs would be a function of various variables such as demand, product differentiation, quality, and current contracts. He underscored that these variables would be of particular significance to industries like textiles.

At the same time, New Delhi roundly condemned Washington's recent trade actions. In a formal reaction, the government said the tariff measures introduced 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 statement said.