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Commerce and Industry Minister Piyush Goyal met External Affairs Minister S Jaishankar on Wednesday shortly after US President Donald Trump announced a 25 per cent tariff on merchandise imports from India, with effect from August 1. The development comes two days before a deadline set by Trump that would lift a three-month pause on steep tariffs for a number of America's trade partners, including India.
The new duty of 25 per cent is set to impact India’s goods exports to the US, including areas such as garments, pharmaceuticals, jewellery and petrochemicals.
India exports goods to the tune of $87 billion in 2024. Currently, the US has a $45.7 billion trade deficit with India.
India-US trade ties uncertainty now behind
The announcement will remove uncertainty around the imminent trade duty among Indian exporters, according to sources.
The development also signifies India's firm standing on its conditions in bilateral talks with the US, they said.
Industry stakeholders were in contact with the central government continuously, the sources added.
Trump also mentioned an unspecified penalty on India from August 1, without elaborating.
India-US Trade Update | No trade deal months into negotiations
The Commerce Ministry has been leading trade negotiations with its US counterpart over the past few months.
The development also puts to rest nascent hopes of a limited trade deal between the two countries.
Negotiators from both sides have already held multiple rounds of talks to resolve a range of issues, particularly over market access for American agricultural and dairy products.
While there have been signs of progress in some areas, the India side has resisted opening the domestic market to imports of products such as wheat, corn, rice and genetically modified soybeans.
With this development, India has joined a long list of countries facing higher tariffs under the 47th US President's 'Liberation Day' reciprocal tariff policy. The stern policy is aimed at reshaping America's relations with most of its trade partners.
Meanwhile, India views the US as a key strategic partner.
English (US) ·