India Scouts New Export Markets in South Asia, Africa, Latin America Amid US Tariff Hikes

India is actively exploring new markets for goods and services exports as a diversification strategy following the United States' decision to impose additional tariffs on Indian exports, according to Dammu Ravi, Secretary, Economic Relations, Ministry of External Affairs. The announcement comes amid escalating trade tensions over India's Russian crude oil imports.

25% Additional US Tariffs Drive Export Market Diversification

US President Donald Trump announced additional 25% tariffs on Indian goods on August 7, 2025, citing India's import of Russian crude oil. These tariffs, over and above existing 25% duties, will take effect 21 days after announcement. Ravi called the US decision a unilateral move without logic, whilst expressing confidence in ongoing negotiations for mutually beneficial outcomes.

South Asia, Africa, and Latin America as Export Destinations

Ravi emphasised that higher tariffs do not significantly deter Indian industry, stating the country will look at opportunities in new markets. Priority regions include South Asia, Africa, the Middle East, and Latin America as potential export destinations. He noted it's natural for countries to seek alternatives when one market becomes difficult to access.

Read More: Will IT Software Companies in India Feel the Heat of Trump’s Tariffs?!

Commerce Ministry Leads Ongoing Trade Negotiations

The Ministry of Commerce is spearheading discussions with the US, with Ravi confirming negotiations continue despite a temporary momentum pause. He expressed confidence that solutions will be found in due course, noting the US and India remain strong strategic partners with a complementary relationship history.

Conclusion

India's exploration of new export markets in South Asia, Africa, and Latin America amid US 25% additional tariffs demonstrates a strategic diversification approach. With the Commerce Ministry leading ongoing negotiations and confidence in finding solutions, India's focus on alternative markets through BRICS cooperation reflects a natural response to temporary trade barriers while maintaining strategic partnerships.

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