FX.co ★ Extra Tariff to Hit 55% of Indian Exports to US

Approximately 55% of Indian exports to the United States will be affected by the newly announced tariffs, according to Minister of State for Finance Pankaj Chaudhary during a Lok Sabha session, as covered by The Economic Times. Chaudhary assured that the Indian government is fully committed to safeguarding the interests of farmers, exporters, MSMEs, and entrepreneurs. He further stated that all necessary actions will be taken to protect national interests. The United States serves as India’s largest export destination, making up 20% of India's total merchandise exports valued at USD 437 billion for the fiscal year 2025. An initial 25% additional tariff on Indian goods by the US was scheduled to take effect on August 7. Following this, the Trump administration introduced an extra 25% tariff, allegedly in retaliation for New Delhi's ongoing procurement of Russian oil, resulting in a cumulative tariff of 50% on Indian exports to the US.