Trump’s 50% tariffs to affect Indian exports worth $48 billion, says Centre

The Centre on Tuesday said almost $50 billion worth of Indian goods will be affected once the 50 per cent US tariff comes into effect on 27 August.

In a written reply to the Lok Sabha regarding a question on the effect of Donald Trump's tariffs, Minister of State for Commerce and Industry Jitin Prasada said that around $48.2 billion of India's merchandise exports will be subject to the additional tariffs.

“It is estimated that around $48.2 billion of India’s merchandise export (based on 2024 trade value) to the US will be subject to the above additional tariffs,” he said in the reply.

Trump has imposed 25 per cent reciprocal tariffs on India and an additional 25 per cent levy on its purchases of Russian oil, resulting in a total of 50 per cent duties.

“Reciprocal tariff at the rate of 25% has been imposed on certain goods exported from India to the USA starting from 7 August 2025. Further, an additional ad valorem rate of duty of 25% with effect from 27 August 2025 has been imposed on certain goods exported from India,” Prasada explained in his answer.

In his reply, the minister said that the Centre is ‘committed to securing India's national interest and protecting its farmers, workers, and others in light of the recent US tariffs.

“Government is committed to secure and advance the 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 the impact on trade, including through appropriate export promotion and trade diversification measures,” he said in the reply.

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

India-US bilateral trade deal

India and the USA are negotiating a multi-sector Bilateral Trade Agreement (BTA), with five rounds of talks already being completed.

The US team has recently postponed their visit for the sixth round of US tariff negotiations, which was scheduled for 25 August.

In a separate reply regarding the matter, Jitin Prasada said, “As a part of negotiations, among other things, both sides are engaged in discussions on liberalization of trade in goods, including non-sensitive agricultural products, with the aim to expand trade and deepen the India-US trade relationship.”