Govt says Indian exports worth $48.2 billion to US to face 50% tariff

Govt says $48.2 billion in Indian exports to US to face 50% tariff

Around $48.2 billion worth of India’s merchandise exports to the US are estimated to face tariffs of 50 percent, out of which an additional 25 percent duty is set to kick in from later this month, commerce ministry said in a written response to the Lok Sabha on August 19.

This estimate is based on the value of trade between India and the US in 2024.

“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,” junior commerce minister Jitin Prasada said.

Most Indian exports to the US are currently facing a 25 percent tariff starting August 7, 2025, which is set to double from August 27.

“The Government has taken note of tariff imposition by the US,” Prasada added.

Key exports such as electronics, pharmaceuticals and petroleum products are currently exempt from steeper duties.

On August 11, the finance ministry said that around 55 percent of Indian exports to the US will be subject to 25 percent reciprocal duties by the US. The ministry then did not elaborate on the impact of the additional 25 percent duty planned to be levied on India.

Commerce Secretary Sunil Barthwal on August 14 said that India and the US are “fully engaged” on negotiations for a Bilateral Trade Agreement (BTA).

The last round of talks for the BTA was held in July in the US.