The Indian government has responded to a question about the impact of the U.S. reciprocal tariff threat on Indian goods, stating that a 25% tariff is proposed to be implemented on certain exports to the U.S. beginning August 7, 2025. This measure is expected to affect approximately 55% of the total value of India’s merchandise exports to the U.S. The government noted that the actual impact on India’s exports will depend on various factors, including product differentiation, demand, quality, and existing contractual agreements. The Department of Commerce is actively engaged with stakeholders, including exporters and industry representatives, to assess the situation and gather their feedback. The government has affirmed its commitment to protecting the interests of Indian farmers, entrepreneurs, exporters, and MSMEs, and has stated that it will take all necessary actions to safeguard national interests.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO. 3604
TO BE ANSWERED ON MONDAY, AUGUST 11, 2025/ SRAVANA 20, 1947(SAKA)
RECIPROCAL TARIFF THREAT OF USA ON INDIAN GOODS
3604. SHRI M K RAGHAVAN:
Will the Minister of FINANCE be pleased to state:
a. whether the Government has made any assessment on impact of USA’s reciprocal tariff threat on Indian goods;
b. if so, the details thereof;
c. the specific goods or sectors of the country expected to be affected by the implementation of the USA’s reciprocal tariff threat; and
d. the action taken by the Government to address the concerns of affected sectors?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) and (b) Reciprocal tariff at the rate of 25% is proposed to be imposed on certain goods exported from India to the USA starting from August 07th, 2025. It is estimated that around 55% of total value of India’s merchandise exports to the US will be subject to this reciprocal tariff. It may be noted that reciprocal tariffs at varying rates have been imposed by the US on imports from all countries. Combination of different factors such as product differentiation, demand, quality, contractual arrangements would determine the impact on India’s exports.
(c) and (d) The Department of Commerce is engaged with all stakeholders including exporters and industry for taking feedback of their assessment of the situation. The Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, exporters, MSMEs etc. and will take all necessary steps to secure our national interest.
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