The government on Tuesday said it has taken note of the additional tariffs imposed by the United States on Indian goods, which are set to hit a significant portion of exports.
The Ministry of Commerce estimated that around $48.2 billion worth of merchandise exports to the US, based on 2024 trade values, will be subject to these tariffs. The US is India’s largest single-country trading partner.
According to the parliamentary reply by Minister of State for Commerce and Industry Jitin Prasada, reciprocal tariffs at the rate of 25% came into effect on certain Indian exports to the US from Aug. 7. A further 25% ad valorem duty will be imposed on additional goods from Aug. 27.
“The government has taken note of tariff imposition by the US,” the reply said, adding that New Delhi is committed to “secure and advance national interest and protect the welfare of our farmers, workers, entrepreneurs, exporters, MSMEs and all sections of industry.”
Officials said steps are being taken to mitigate the impact on trade flows, including through export promotion measures and diversification into new markets.
The development comes as India and the US remain engaged in negotiations for a bilateral trade agreement. However, the sixth, in-person round of talks for the BTA scheduled for Aug. 25-29 have been called off, with an alternate date likely to come up soon.
In a separate reply, Prasada stated that rare earth magnet restrictions imposed by China resulted in a “supply chain bottleneck”, impacting Indian industries including electronic vehicles. He added that the Ministry of Mines is working to diversify sourcing, with agreements already in place with Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi, Cote D’Ivoire and bodies like the International Energy Agency. An Indian joint venture, Khanij Bidesh India Ltd., has also been set up to acquire overseas mineral assets.
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