**Policy Summary: US Tariff Imposition on India**
On August 19, 2025, the Ministry of Commerce and Industry addressed Lok Sabha Unstarred Question No. 4301 regarding tariffs imposed by the United States on Indian goods. Effective August 7, 2025, a reciprocal tariff of 25% has been levied on certain goods exported from India to the US. Furthermore, an additional ad valorem duty of 25% has been imposed on specific Indian exports, effective August 27, 2025. The Indian government has formally acknowledged the imposition of these tariffs. Preliminary government estimates indicate that approximately USD 48.2 billion of India's merchandise exports to the US (based on 2024 trade values) will be subject to these additional tariffs. The government is committed to mitigating the impact on trade through export promotion and trade diversification measures, while prioritizing the interests of farmers, workers, entrepreneurs, exporters, MSMEs, and all sectors of industry. Further action, including potential retaliatory measures, is under consideration.
Key Entities Referenced
United States of America: Country imposing tariffs on India, impacting trade relations.
India: Country subject to tariffs imposed by the United States.
Russia: Country mentioned in the context of additional penalties for trade with.
Ministry of Commerce and Industry: Indian government ministry responsible for commerce and industry.
Lok Sabha: Refers to the lower house of the Indian Parliament, where the question was raised.
Adoor Prakash: Member of Parliament who raised the question regarding US tariffs.
Jitin Prasada: Minister of State in the Ministry of Commerce and Industry who answered the question.
MSMEs: Micro, Small and Medium Enterprises in India, whose welfare the government aims to protect.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
LOK SABHA
UNSTARRED QUESTION NO. 4301
ANSWERED ON 19/08/2025
US TARIFF ON INDIA
4301. ADV. ADOOR PRAKASH
Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be pleased
to state:
(a) whether the United States of America has imposed a tariff of 25% on India and also
additional penalties for trade with Russia from 1st August, 2025;
(b) if so, the details thereof along with the response of the Government on tariff
imposition while trade negotiations are going on with the United States;
(c) whether the Government has reviewed the impact of tariff imposition on India, if so,
the details thereof; and
(d) whether the Government is considering any retaliatory measures against this
unilateral decision of United States, if so, the details thereof?
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) & (b) Reciprocal tariff at the rate of 25% has been imposed on certain goods exported
from India to the USA starting from August 07th, 2025. Further, additional ad valorem rate
of duty of 25% with effect from 27th August, 2025 has been imposed on certain goods
exported from India. The Government has taken note of tariff imposition by the US.
(c) & (d) It is estimated that around USD 48.2 billion of India’s merchandise export (based
on 2024 trade value) to the US will be subject to the above additional tariffs. Government
is committed to secure and advance country’s national interest and protect the welfare of
our farmers, workers, entrepreneurs, exporters, MSMEs and all sections of industry
and take all necessary steps to help mitigate impact on trade including through appropriate
export promotion and trade diversification measures.
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