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India Faces 25% Reciprocal Tariff on 55% of Exports to US from August 7

From August 7, 2025, 55% of India’s exports to the US face a 25% reciprocal tariff, with the government assessing industry impact.

The Ministry of Finance has confirmed that from August 7, 2025, a 25 percent reciprocal tariff will be imposed on certain Indian goods exported to the United States. According to junior finance minister Pankaj Chaudhary’s statement in the Lok Sabha on August 11, this move will impact approximately 55 percent of India’s total merchandise exports to the US by value.

The Department of Commerce is currently engaging with stakeholders, including exporters, manufacturers, and industry bodies, to assess the impact of these US tariffs on Indian trade. The reciprocal duties follow similar measures implemented by the US on imports from multiple countries.

Chaudhary highlighted that the extent of impact will depend on various factors, such as product differentiation, demand trends, quality standards, and existing contractual arrangements between Indian exporters and US buyers.

The government reiterated its commitment to safeguarding the interests of farmers, entrepreneurs, MSMEs, and exporters, stating it will take all necessary measures to protect national economic interests amid changing global trade dynamics.

3:05 pm

11 August 2025

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