**Executive Summary**
This document is the response from the Minister of State in the Ministry of External Affairs to Unstarred Question No. 2155 in Lok Sabha, answered on December 12, 2025. The question concerns the trade tensions with the United States arising from tariffs imposed on Indian goods in August 2025. The response outlines the tariffs imposed, the value of Indian exports affected, and the government's efforts to address the situation.
**Key Points / Main Content**
* **US Tariffs:**
* On July 31, 2025, the US imposed reciprocal tariffs on certain goods exported by most countries, including India, under the International Emergency Economic Powers Act (IEEPA).
* On August 27, 2025, an additional 25% ad valorem duty was applied on select Indian exports under IEEPA in response to India's importation of Russian oil.
* The US also imposed sector-specific tariffs under Section 232 of the Trade Expansion Act on products such as steel, aluminium, copper, upholstered furniture, kitchen cabinets, softwood, and automobiles.
* **Unaffected Goods and Services:**
* Several goods and services remain unaffected by the tariffs, including crude oil, petroleum products, pharmaceuticals, bullion, certain electronic items, precious metals, critical minerals, resins and plastics, agricultural products, and IT services.
* **Impact on Indian Exports:**
* Approximately USD 47.2 billion of India's USD 86.4 billion merchandise exports to the US are subject to these additional tariffs, based on 2024 trade data.
* **Government Initiatives:**
* The government is in close consultation with Indian exporters and industry to assess the implications of the US measures.
* The government is providing targeted support to exporters through initiatives like the Export Promotion Mission, Reserve Bank of India's trade-facilitation provisions and Credit Guarantee Scheme for Exporters.
* The government is improving the utilization of existing Free Trade Agreements (FTAs) and advancing negotiations on new FTAs.
* The government is engaged with the US to conclude a fair, balanced, and mutually beneficial multi-sector India-U.S. Bilateral Trade Agreement.
**Impact Analysis**
**Stakeholder:** Indian Exporters and Industry
* **Impact:** Affected by tariffs on approximately USD 47.2 billion of exports to the US.
* **Action Required:** Provide feedback to the government on the implications of the US measures and utilize available support initiatives.
**Stakeholder:** Government of India
* **Impact:** Responsible for addressing trade tensions with the US and supporting Indian exporters.
* **Action Required:** Continue consultation with exporters, provide targeted support, improve utilization of FTAs, and engage with the US for a balanced trade agreement.
Key Entities Referenced
United States: Country involved in trade tensions with India due to tariff escalation.
Ministry of External Affairs: Indian ministry responsible for diplomatic engagements and trade negotiations.
International Emergency Economic Powers Act (IEEPA): US act invoked to impose tariffs on goods exported by most countries, including India.
Trade Expansion Act Section 232: US Act under which the U.S. imposed sector-specific tariffs.
Export Promotion Mission: An initiative to provide targeted support to exporters.
GOVERNMENT OF INDIA
MINISTRY OF EXTERNAL AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO- 2155
ANSWERED ON- 12/12/2025
TARIFFS ON INDIAN GOODS
2155. SHRI ADV GOWAAL KAGADA PADAVI
Will the Minister of EXTERNAL AFFAIRS be pleased to state :-
(a) whether the Government has noted the sharp escalation in trade
tensions with the United States in August 2025, when the US
announced tariffs of up to 50 percent on Indian goods citing India's
purchase of Russian oil, if so, the details thereof;
(b) the total value of Indian exports to the US affected by these tariffs
and its expected impact on India's economy and bilateral trade;
(c) the diplomatic engagements or negotiations the MEA has initiated
to resolve or mitigate these tariff measures and the timelines of these
discussions;
(d) whether India has sought or plans to seek compensatory or
retaliatory trade-measures;
(e) the manner in which these align with India's broader foreign policy
and trade strategy; and
1(f) the timeline by which the Government expects normalisation of
trade relations with the US and the time by which first progress report
will be made public in this regard?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF EXTERNAL AFFAIRS
(SHRI KIRTI VARDHAN SINGH)
(a to f) On 31 July 2025, the U.S. imposed reciprocal tariffs, invoking
national emergency authorities under the International Emergency
Economic Powers Act (IEEPA), on certain goods exported by most
countries, including India. Further, on 27 August 2025, an additional
25% ad valorem duty was applied on select Indian exports under
IEEPA in response to India’s importation of Russian oil. In parallel, the
U.S. has imposed a range of sector-specific tariffs under Section 232
of the Trade Expansion Act on products such as steel and aluminium,
copper, upholstered furniture and kitchen cabinets, softwood, and
automobiles.
However, several goods and services, including crude oil and
petroleum products, pharmaceuticals, bullion, certain electronic
items, precious metals, critical minerals, resins and plastics,
agricultural products, and IT services, among others, have not been
subject to tariffs. Based on 2024 trade data, an estimated USD 47.2
2billion of India’s merchandise exports to the U.S., out of a total of
about USD 86.4 billion, fall under the categories subject to these
additional tariffs.
Government remains in close consultation with Indian exporters and
industry to assess their feedback on the implications of the U.S.
measures. Efforts are underway to provide targeted support to
exporters through initiatives such as the new Export Promotion
Mission, Reserve Bank of India’s trade-facilitation provisions and
Credit Guarantee Scheme for Exporters, improving the utilization of
existing Free Trade Agreements (FTAs) and advancing negotiations
on new (FTAs). This also includes sustained engagement with the U.S.
Government for the early conclusion of a fair, balanced, and mutually
beneficial multi-sector India–U.S. Bilateral Trade Agreement.
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