Trump tariffs to impression 55% of Indian exports to US: Govt tells Parl ‘will safe nationwide curiosity’

The federal government on Monday instructed Parliament that greater than half of the nation’s shipments to its largest export market will face sharply greater duties after Washington’s newest commerce transfer. About 55 per cent of India’s merchandise exports to the US are subjected to a reciprocal tariff fee of 25 per cent from August 7, 2025. This follows US President Donald Trump’s determination final week to impose a further 25 per cent tariff on Indian items, successfully doubling whole duties to 50 per cent for many merchandise.

Minister of State for Finance Pankaj Chaudhary confirmed in a written reply that the estimate factored within the 25 per cent tariff Washington had already imposed earlier. He burdened that the Division of Commerce was in fixed contact with exporters, trade representatives and different stakeholders to gauge the doubtless injury and to form an applicable response.

Tariffs linked to Russian oil purchases

The set off for the escalation, US officers have stated, was India’s continued buy of Russian oil regardless of repeated warnings from Washington. Trump’s administration described the transfer as a punitive measure, focusing on a key commerce companion over what it sees as a breach of geopolitical self-discipline.

Business watchers have famous that the brand new levy pushes India into the identical high-tariff bracket as Brazil, with each international locations now dealing with 50 per cent duties on most exports to America. Lots of India’s opponents within the US market will probably be significantly better positioned: Myanmar’s duties stand at 40 per cent, Thailand and Cambodia at 36 per cent, Bangladesh at 35 per cent, Indonesia at 32 per cent and China and Sri Lanka at 30 per cent. Even Malaysia’s 25 per cent and Vietnam’s 20 per cent look comparatively modest.

Authorities pledges to ‘safe nationwide curiosity’

In its assertion to Parliament, the federal government burdened upon the truth that it attaches the very best significance to defending the pursuits of farmers, entrepreneurs, exporters and MSMEs. The federal government assured that each one needed steps could be taken to safe nationwide curiosity within the face of the tariff shock. Consultations with affected sectors are underway, with the intention of mitigating losses and figuring out various market alternatives.

The Commerce Division has been tasked with gathering suggestions from exporters to evaluate how components reminiscent of product differentiation, contractual obligations and demand cycles will affect the eventual impression.

Exporters warn of extreme setback

The Federation of Indian Export Organisations (FIEO) referred to as the US determination “extraordinarily surprising” and warned that it might inflict vital injury on sectors reminiscent of textiles, marine merchandise and leather-based items. FIEO Director Normal Ajay Sahai stated the upper duties would make Indian merchandise between 30 per cent and 35 per cent much less aggressive than these from international locations with decrease tariff charges, a PTI report stated earlier.

Sahai famous that a number of export orders had already been paused whereas American consumers reconsidered sourcing plans in gentle of upper landed prices. For MSME-dominated sectors, he argued, absorbing the sudden escalation was not viable given already skinny margins, and lots of risked dropping long-standing purchasers.

Commerce volumes and financial stakes

The dispute comes towards the backdrop of a big and rising commerce relationship. In line with authorities estimates, items commerce between the 2 economies—the world’s largest and fifth-largest—was price about $87 billion within the final fiscal 12 months. Different knowledge put whole bilateral commerce in 2024–25, together with companies, at $131.8 billion, with India exporting items price $86.5 billion and importing $45.3 billion from the US.

Economists stated that given the scale of the US marketplace for Indian exporters, the brand new duties might dent general export progress and put further strain on the present account. The affected sectors, they added, would wish both fast aid by way of negotiation or help in diversifying their markets.

A seek for answer

New Delhi has signalled that it’s going to proceed to discover diplomatic and commerce avenues to handle the state of affairs, however exporters have warned that with out fast intervention, shipments will sluggish, and market share might erode rapidly.

Whether or not the standoff results in a negotiated answer or ushers in a protracted interval of upper commerce obstacles will decide how a lot of India’s export basket might be salvaged from the impression of this steep tariff escalation.