More than half of the total export value of India’s merchandise to the United States is likely to be impacted by Washington’s reciprocal tariff move, the Union finance ministry informed the Parliament on Tuesday, while clarifying that the secondary tariff imposed by US President Donald Trump will not be applicable to India’s export of pharmaceutical and electronic goods to America.
“It is estimated that around 55% of the total value of India’s merchandise exports to the US is subject to this reciprocal tariff,” Union minister of state for finance Pankaj Chaudhary said in a written response to Lok Sabha MP Abhishek Banerjee.
The government also highlighted that the impact of tariffs on different goods is estimated on factors involving product differentiation, demand, quality and contractual arrangements.
Trump on July 31 announced a 25% reciprocal tariff on imported goods from India. A few days later on August 6, the US President signed an executive order imposing an additional 25% tariff, justifying it as an action against India’s “direct or indirect” purchase of crude oil from Russia.
The external affairs ministry has slammed these actions as “unfair, unjust and unreasonable.”