Trump Tariffs Could Hit 55% of India's Merchandise Exports to the US: MoS Finance

As per news reports, India’s export sector faces a challenge as tariff measures by the United States are set to strike more than half of its merchandise exports. The phased duty hikes, announced by US President Donald Trump, will see total tariffs on Indian goods reach 50% by the end of August, prompting the Indian government to step up measures to protect its trade interests.

Tariff Details and Scope of Impact

Minister of State for Finance Pankaj Chaudhary revealed in a written Lok Sabha reply that approximately 55% of India’s total merchandise exports to the US will come under a 25% reciprocal tariff from 7 August. “A combination of different factors, such as product differentiation, demand, quality, and contractual arrangements, would determine the impact on India’s exports,” he explained. 

Emphasising the government’s stance, Chaudhary said it attaches “utmost importance” to the welfare of farmers, entrepreneurs, exporters, and MSMEs, and pledged to take all steps necessary to defend the national interest.

Phased Hike to 50% of Total Tariff

The initial 25% reciprocal tariff will be followed by an additional 25% duty announced by President Trump, taking effect on 27 August. This move will bring the total tariff on Indian goods exported to the US to 50%. 

Chaudhary underlined: “It is estimated that around 55% of the total value of India's merchandise exports to the US will be subject to this reciprocal tariff,” signalling a significant shift in the trade equation between the 2 nations.

Also Read: US Tariffs Put $2 Billion Indian Shrimp Exports at Risk, Exporters Appeal for Support!

Conclusion

With half of India’s merchandise exports to the US soon to face a 50% tariff, the government is working to assess sector-specific impacts and safeguard its export community. As global trade tensions escalate, India’s resilience will hinge on strategic adaptation and supportive policy measures.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.