About $48 Billion Worth of Goods to be Impacted by US' 50 Percent Tariff
Approximately $48.2 billion worth of India's goods exported to the US are projected to be subject to a 50 percent tariff, with an additional 25 percent duty set to come into effect later this month, according to a statement from the commerce ministry in response to the Lok Sabha on August 19.
This projection is derived from the trade value between India and the US anticipated in 2024.
“The government is dedicated to safeguarding and promoting the country's national interests and ensuring the well-being of our farmers, laborers, entrepreneurs, exporters, MSMEs, and all sectors of industry, while taking all necessary measures to alleviate the impact on trade, including through suitable export promotion and trade diversification initiatives,” stated junior commerce minister Jitin Prasada.
Currently, most Indian exports to the US are subject to a 25 percent tariff that began on August 7, 2025, which is expected to increase to 50 percent from August 27.
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“The government has acknowledged the imposition of tariffs by the US,” Prasada added.
Key exports, such as electronics, pharmaceuticals, and petroleum products, are presently exempt from higher duties.
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On August 11, the finance ministry indicated that approximately 55 percent of Indian exports to the US would face 25 percent reciprocal duties imposed by the US. The ministry, however, did not specify the implications of the additional 25 percent duty intended for India.
Commerce Secretary Sunil Barthwal mentioned on August 14 that India and the US are “actively engaged” in discussions regarding a Bilateral Trade Agreement (BTA).
In his Independence Day speech, Prime Minister Narendra Modi emphasized that India would not agree to any trade arrangement that compromises the interests of farmers or cattle breeders.
President Trump remarked to Fox News last week that “he (Russian President Vladimir Putin) has lost an oil client, so to speak, which is India, which was handling about 40 percent of the oil. As you know, China is taking on a lot… And if I had to impose what’s known as a secondary sanction or a secondary tariff, it would be extremely damaging from their perspective. If I need to do it, I will. Perhaps it won't be necessary.”