Finance Ministry flags 55% of Indian exports to face US tariffs, vows protective measures
Responding to a question in Parliament, the ministry noted that the actual impact on exporters will depend on factors such as product differentiation, quality, existing contracts, and market demand resilience. Key sectors likely to be most affected include textiles, footwear, and jewellery.
- Aug 11, 2025,
- Updated Aug 11, 2025 3:29 PM IST
In the wake of Washington’s sudden move to impose a 50% tariff on Indian goods, India’s Ministry of Finance has estimated that about 55% of the total value of merchandise exports to the U.S. will now face a cumulative 25% tariff from August 7.
Responding to a question in Parliament, the ministry noted that the actual impact on exporters will depend on factors such as product differentiation, quality, existing contracts, and market demand resilience. Key sectors likely to be most affected include textiles, footwear, and jewellery.
While acknowledging the potential disruption, the ministry said the Department of Commerce is holding active consultations with exporters, MSMEs, and trade associations to assess the damage and formulate targeted responses. “The government attaches utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, exporters, and MSMEs,” the ministry said.
Speaking at the BT@100 conclave in New Delhi, Commerce and Industry Minister Piyush Goyal addressed the rising trade tensions directly, stating, “India will not bow down to anybody,” and underlining a strategy of firm diplomacy supported by domestic economic resilience.
The government is weighing countermeasures such as diversifying export markets, offering targeted subsidies, and fast-tracking trade agreements with other partners. Analysts say that while the short-term pain could be significant, reducing overreliance on the U.S. may strengthen India’s long-term export position.
In the wake of Washington’s sudden move to impose a 50% tariff on Indian goods, India’s Ministry of Finance has estimated that about 55% of the total value of merchandise exports to the U.S. will now face a cumulative 25% tariff from August 7.
Responding to a question in Parliament, the ministry noted that the actual impact on exporters will depend on factors such as product differentiation, quality, existing contracts, and market demand resilience. Key sectors likely to be most affected include textiles, footwear, and jewellery.
While acknowledging the potential disruption, the ministry said the Department of Commerce is holding active consultations with exporters, MSMEs, and trade associations to assess the damage and formulate targeted responses. “The government attaches utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, exporters, and MSMEs,” the ministry said.
Speaking at the BT@100 conclave in New Delhi, Commerce and Industry Minister Piyush Goyal addressed the rising trade tensions directly, stating, “India will not bow down to anybody,” and underlining a strategy of firm diplomacy supported by domestic economic resilience.
The government is weighing countermeasures such as diversifying export markets, offering targeted subsidies, and fast-tracking trade agreements with other partners. Analysts say that while the short-term pain could be significant, reducing overreliance on the U.S. may strengthen India’s long-term export position.