The Centre on Tuesday informed the Lok Sabha that nearly $50 billion worth of Indian exports will be impacted once the 50% U.S. tariff takes effect on August 27. In a written response, Minister of State for Commerce and Industry Jitin Prasada stated that approximately $48.2 billion of India’s 2024 merchandise exports to the U.S. will fall under the new duties.
Prasada explained that the U.S. has imposed a 25% reciprocal tariff on select Indian goods from August 7, 2025, along with an additional 25% levy tied to India’s purchases of Russian oil, bringing total duties to 50%.
He assured that the government is committed to protecting national interests and supporting farmers, workers, exporters, MSMEs, and industries. Measures to mitigate the trade impact will include export promotion and diversification strategies.
On the India-U.S. Bilateral Trade Agreement (BTA), he noted that five negotiation rounds have been completed. However, the U.S. postponed its sixth-round visit, originally set for August 25. Talks include discussions on liberalizing trade in goods, including select agricultural items, to enhance bilateral trade relations.