**Executive Summary:**
This document details the impact of recent U.S. tariffs and trade restrictions imposed on India between January 20, 2025, and July 30, 2025. It outlines specific tariffs on steel, aluminum, copper, automobiles and their derivatives, countervailing duties on various products, and country-specific reciprocal tariffs. The document also addresses the Indian government's response, including WTO consultations and mitigation strategies, with a focus on protecting national interests and supporting affected sectors.
**Key Points / Main Content:**
* **Tariffs on Metals:**
* A 25% ad valorem tariff was imposed on all steel imports from February 10, 2025.
* The tariff on aluminum imports was increased from 10% (imposed in 2018) to 25% and subsequently to 50% on June 3, 2025.
* A 50% ad valorem tariff was levied on all copper imports from July 30, 2025.
* **Automobile Tariffs:**
* A 25% ad valorem tariff was imposed on imports of passenger vehicles, light trucks, and certain automobile parts from India, effective May 3, 2025, for auto parts.
* **WTO Consultations:**
* India submitted requests for consultation under the WTO Agreement on Safeguards (AoS) regarding tariffs on steel, aluminum, and automobiles.
* India reserved its right to suspend equivalent concessions as the USA did not agree to consultations.
* **Countervailing Duties:**
* The U.S. imposed countervailing duties (CVD) on exports of Melamine, Hexamine, Epoxy Resins, Ceramic Tile, 2,4 Dichlorophenoxyacetic Acid, Hard Empty Capsules, Overhead Door Counterbalance Torsion Springs, and High Chrome Cast Iron Grinding Media from India.
* **Reciprocal Tariffs:**
* The U.S. announced country-specific reciprocal tariffs, including a 26% tariff on India, effective April 9, 2025, but these were suspended until August 1, 2025.
* A baseline tariff of 10% on nearly all U.S. imports was imposed w.e.f April 5, 2025.
* **Export Data:**
* India's exports to the U.S. covered by additional tariffs on steel, aluminum, copper, their derivatives, and auto parts amounted to USD 8.9 billion in 2024.
* India's exports to the U.S. covered by country-specific reciprocal tariffs amounted to USD 48.2 billion in 2024.
* Overall exports to the USA from April to July 2025 stood at USD 33.53 Billion, a 21.64% increase from USD 27.56 Billion in the same period of the previous year.
* **Government Response:**
* The government is committed to protecting national interests and the welfare of farmers, workers, entrepreneurs, exporters, MSMEs, and employment-intensive industries.
* Mitigation strategies include export promotion and trade diversification.
* The government is engaging with stakeholders for feedback.
**Impact Analysis:**
**Indian Exporters:**
* *Impact:* Face increased tariffs on steel, aluminum, copper, automobiles, and certain chemical and industrial products, potentially reducing export competitiveness and volumes.
* *Action Required:* Assess the impact of tariffs on their products, explore alternative markets, and engage with the government for support and guidance on trade diversification and export promotion.
**Indian Industries (Steel, Aluminum, Copper, Automotive, Chemicals):**
* *Impact:* Potential revenue decline due to reduced export volumes, increased production costs, and challenges in maintaining market share in the U.S.
* *Action Required:* Evaluate production and pricing strategies, explore domestic market opportunities, and seek government support for technology upgrades and diversification.
**MSMEs and Employment-Intensive Industries:**
* *Impact:* Increased vulnerability to trade shocks, potential job losses, and financial strain due to reduced export demand.
* *Action Required:* Participate in government initiatives for export promotion and trade diversification, seek financial assistance and technology upgrades to enhance competitiveness.
**Indian Government:**
* *Impact:* Need to address trade imbalances, protect domestic industries, and negotiate trade disputes with the U.S.
* *Action Required:* Continue consultations with the U.S. through the WTO, implement mitigation strategies such as export promotion and trade diversification, and provide support to affected sectors.
Key Entities Referenced
United States of America (USA): A country that imposed tariffs and countervailing duties on imports from India.
India: A country against which the U.S. announced new tariffs, countervailing duties, and trade penalties.
World Trade Organization (WTO): An international forum where India submitted requests for consultation regarding U.S. trade actions.
Ministry of Commerce and Industry: The Indian government ministry responsible for matters related to trade and industry.
Shri Amrinder Singh Raja Warring: The member of Lok Sabha who asked the unstarred question related to impact of recent U.S. Tariffs.
Shri Jitin Prasada: The Minister of State in the Ministry of Commerce and Industry who provided the answer to the question regarding the impact of U.S. tariffs.
MSMEs: Micro, Small and Medium Enterprises in India, which are potentially vulnerable to external trade shocks.
WTO Agreement on Safeguards AoS: Agreement under which India submitted request for consultation with USA.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
LOK SABHA
UNSTARRED QUESTION NO. 4154
ANSWERED ON 19/08/2025
IMPACT OF RECENT U.S. TARIFFS
4154. SHRI AMRINDER SINGH RAJA WARRING:
Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be pleased
to state:
(a) the details of the new tariffs, countervailing duties, trade penalties or trade restrictions
announced by the U.S. against India till 30 July 2025;
(b) the specific sectors or product categories from India that have been affected by these
measures and the estimated economic impact, in terms of export volume loss or
revenue decline, for Indian industries;
(c) the representations or consultations that have been made by the Government with
U.S. trade authorities or at international forums like the WTO to contest or negotiate
these actions;
(d) whether the Government has identified any retaliatory or mitigation strategies,
including diversifying export markets or offering support to affected sectors, if so, the
details thereof; and
(e) the long-term policy adjustments that are being considered to reduce India’s
vulnerability to such external trade shocks, especially for MSMEs and employment-
intensive industries?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JITIN PRASADA)
(a) to (d) From January 20, 2025 till July 30, 2025, the details of new tariffs, countervailing
duties, trade penalties announced by the US against India are as follows:
i. On February 10, 2025, the USA announced levy of 25 per cent ad valorem tariff on
all imports of steel articles and derivatives into the US, including from India, and
increased the additional ad valorem tariff on aluminium and derivatives from 10 per
cent (imposed in 2018) to 25 per cent. On 03 June 2025, the USA increased the tariff
rate on all imports of steel articles and their derivatives, and aluminium and its
derivatives, including from India, from 25 percent to 50 percent ad valorem. Against
these measures, India submitted request for consultation under the WTO Agreement
on Safeguards (AoS). As USA did not agree, India reserved its right on the
suspension of equivalent concessions.
ii. On March 26, 2025, the USA adopted a measure in the form of a tariff increase of 25
per cent ad valorem on imports of passenger vehicles and light trucks, and on certain
automobile parts originating in or from India. The measure on automobile parts
1applied from May 3, 2025. Against these measures, India submitted request for
consultation under the WTO Agreement on Safeguards (AoS). As USA did not agree,
India reserved its right on the suspension of equivalent concessions.
iii. On July 30, 2025, the USA announced levy of 50 per cent ad valorem tariff on all
imports of copper and their derivative products.
iv. India’s export to the US covered by the above additional ad valorem tariffs on steel,
aluminium, copper, their derivatives and auto parts, as per 2024 data, was USD 8.9
Billion.
v. Countervailing duties (CVD) are imposed to offset injury caused by subsidized
imports after conducting investigation. USA has announced countervailing duties
(CVD) on export of Melamine, Hexamine, Epoxy Resins, Ceramic Tile, 2,4-
Dichlorophenoxyacetic Acid, Hard Empty Capsules, Overhead Door Counterbalance
Torsion Springs, and High Chrome Cast Iron Grinding Media from India in the period
January to July 2025.
vi. On April 2, 2025, the US announced country specific reciprocal tariffs including on
India. A baseline tariff of 10% on nearly all US imports was imposed w.e.f April 5,
2025 with country specific reciprocal tariffs, including on India @26% which was to
be effective from April 9, 2025. However, on India, these reciprocal tariffs were
suspended till August 1, 2025. India’s export to the US covered by country-specific
reciprocal tariffs, as per data for 2024, was USD 48.2 Billion.
vii. During April to July 2025 (QE), overall exports to the USA stood at USD 33.53 Billion,
compared to USD 27.56 Billion in the same period of the previous year, reflecting a
growth rate of 21.64%.
(e) Government is committed to take all necessary steps to secure and advance country’s
national interest and protect the welfare of our farmers, workers, entrepreneurs, exporters,
MSMEs and employment-intensive industries to mitigate impact on trade, including through
appropriate export promotion and trade diversification measures. Government is engaged
with all stakeholders including exporters and industry for taking feedback of their
assessment of the situation.
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