**Summary:**
In response to Lok Sabha Unstarred Question No. 3604, addressed on August 11, 2025, the Ministry of Finance addressed concerns regarding the United States' reciprocal tariff threat on Indian goods. Effective August 7, 2025, the United States is proposing a 25% reciprocal tariff on certain goods exported from India. The Ministry estimates that approximately 55% of the total value of India's merchandise exports to the U.S. will be subject to these tariffs. While the impact on India's exports will be determined by factors such as product differentiation, demand, quality, and contractual arrangements, the Department of Commerce is currently engaging with stakeholders, including exporters and industry representatives, to assess the situation and gather feedback. The Government of India emphasizes its commitment to protecting the interests of farmers, entrepreneurs, exporters, and MSMEs, and will take all necessary measures to safeguard national interests.
Key Entities Referenced
USA: United States of America; country that has issued a reciprocal tariff threat on Indian goods.
Indian goods: Goods exported from India that are subject to the USA's reciprocal tariff threat.
Ministry of Finance: The Indian government ministry responsible for financial matters, answering the question in the Lok Sabha.
SHRI M K RAGHAVAN: Member of Parliament who raised the unstarred question in the Lok Sabha.
SHRI PANKAJ CHAUDHARY: Minister of State in the Ministry of Finance, providing the answer to the Lok Sabha question.
Department of Commerce: Indian government department engaged with stakeholders regarding the impact of the reciprocal tariff.
MSMEs: Micro, Small and Medium Enterprises in India, whose welfare the government aims to protect.
Lok Sabha: The lower house of the Parliament of India, where the question regarding reciprocal tariffs was raised.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO. 3604
TO BE ANSWERED ON MONDAY, AUGUST 11, 2025/ SRAVANA 20,
1947(SAKA)
RECIPROCAL TARIFF THREAT OF USA ON INDIAN GOODS
3604. SHRI M K RAGHAVAN:
Will the Minister of FINANCE be pleased to state:
(a) whether the Government has made any assessment on impact
of USA's reciprocal tariff threat on Indian goods;
(b) if so, the details thereof;
(c) the specific goods or sectors of the country expected to be
affected by the implementation of the USA's reciprocal tariff
threat; and
(d) the action taken by the Government to address the concerns of
affected sectors?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) and (b) Reciprocal tariff at the rate of 25% is proposed to be
imposed on certain goods exported from India to the USA starting
from August 07th, 2025. It is estimated that around 55% of total
value of India’s merchandise exports to the US will be subject to
this reciprocal tariff. It may be noted that reciprocal tariffs at
varying rates have been imposed by the US on imports from all
countries. Combination of different factors such as product
differentiation, demand, quality, contractual arrangements would
determine the impact on India’s exports.
(c) and (d) The Department of Commerce is engaged with all
stakeholders including exporters and industry for taking feedback of
their assessment of the situation. The Government attaches the
utmost importance to protecting and promoting the welfare of our
farmers, entrepreneurs, exporters, MSMEs etc. and will take all
necessary steps to secure our national interest.
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