US Tariffs May Hit Multiple Indian Export Sectors

01-Aug-2025 07:47 PM

Mumbai. The US President has announced a 25 percent tariff on imports of Indian products from August 7, while earlier it was decided to make it effective from August 1. This high tariff is likely to affect the exports of products from many Indian sectors to the US. This includes products from the fields of agriculture, pharmaceuticals, textiles, automobiles and electronics, etc.

Along with the general tariff of 25 percent, additional fines can also be imposed on India, which will be applicable on imports of defense equipment, weapons and energy sources, etc. from Russia.

It is known that five rounds of talks have been held for the bilateral trade agreement between India and the US and the US delegation is going to come to India on August 25 for the sixth round of talks, but the US President is not in a mood to wait till then.

Here it is also worth keeping in mind that when the Indian Prime Minister and the US President met in February, it was decided that the bilateral trade agreement would be finalized by September-October.

It is understood that the US President is angry with India mainly for two reasons. Firstly, India is increasing the import of defense equipment and petroleum etc. from Russia instead of America and secondly, Bharat is an active member of the BRICS organization which is considered an anti-American lobby.

This organization includes Brazil, Russia, India, China and South Africa. Russia and China are America's staunch rivals, while Brazil is giving a tough challenge to America in the export market of soybean and maize. The BRICS countries want to end the dominance of the US dollar in global trade.

In the year 2024, there was a trade of $ 129 billion between India and America and America remained India's major trading partner (market). During the financial year 2024-25, smartphones worth $ 24.10 billion were exported from India to America,

which was 55 percent more than in 2023-24. Apart from this, exports of the pharma (medicine) sector increased to $ 8.70-10.90 billion, which was 31-35 percent of India's total exports. Clothing exports were recorded at $10–80 billion.