From branding India as the "Tariff King" to imposing high import duties, US President Donald Trump has consistently taken a tougher trade stance against New Delhi. These moves are widely interpreted as pressure tactics aimed at pushing India to concede to US demands in the long-discussed Bilateral Trade Agreement (BTA). Here is a list of Q&A (questions and answers) about US tariffs on India and its impact on domestic exporters:
What's the timeline of Trump's tariff actions against India?
- Oct 2019: Trump labels India the "tariff king."
- Sep 2024: Trump calls India a "tariff abuser."
- Apr 2, 2025: US formally announces a 26 per cent import tariff on Indian goods, effective April 9.
- Apr 5, 2025: White House executive order imposed a 10 per cent baseline tariff on imports, with country-specific tariff rates (16 per cent in case of India) scheduled to begin April 9.
- Exemptions: Certain sectors kept out of these duties - pharmaceuticals, electronics, and energy products.
- Apr 9, 2025: US pauses implementation of country-specific tariff rates (16 per cent in the case of India) for 90 days, deferring it to July 9. The 10 per cent baseline tariff remains.
- July 8, 2025: Suspension period further extended to August 1.
- July 30, 2025: US announces 25 per cent tariff plus penalty on Indian goods. Penalty for buying crude oil and military equipment from Russia.
- July 31, 2025: White House issues executive order for 25 per cent tariff to take effect August 7. No mention of penalty. The 10 per cent baseline duty and exempted sectors remain unchanged.
- Aug 5, 2025: Trump says he will raise tariffs further on India "very substantially". Aug 6, 2025: Imposes an additional 25 per cent tariff, raising it to 50 per cent, on goods coming from India as a penalty for New Delhi's continued purchase of Russian oil.
What is the current import duty structure on Indian goods in the US?
Starting today (August 7), Indian goods entering the US are subjected to a 25 per cent tariff (which includes a 10 per cent baseline duty), in addition to the MFN (Most Favoured Nation) rates plus trade remedy measures, if any. For certain exports, this has significantly raised the total levy.
Take Indian shrimp exports as an example: while they face a zero MFN rate, they are already subject to a 2.49 per cent anti-dumping duty and a 5.77 per cent countervailing duty, both being trade remedy measures imposed by the US. As a result, from August 7, Indian shrimp exports are now hit with a 33.26 per cent total duty (25% + 2.49% + 5.77%).
Are there any other tariffs?
Yes. The US has imposed sector-specific tariffs on three categories - steel and aluminium (50 per cent); copper (50 per cent), and auto parts (25 per cent. These are also additional duties (means over and above existing levies, if any).
Which all sectors or product categories are exempted from these tariffs?
According to think tank GTRI (Global Trade Research Initiative), here are the exempted categories from the 50% US tariffs on Indian exports:
- Finished pharmaceutical drugs
- Active Pharmaceutical Ingredients (APIs) and other key drug inputs
- Energy products such as crude oil, refined fuels, natural gas, coal, and electricity
- Critical minerals
- Electronics and semiconductors, including: computers, tablets, smartphones, solid-state drives, flat panel displays, and integrated circuits.
In 2024–25, the bilateral trade between India and the US stood at USD 131.8 billion, with USD 86.5 billion in exports from India and USD 45.3 billion in imports from the US.
Which are the main export sectors that will bear the brunt of the high tariffs?
Here are the key Indian export sectors affected by the 50% US tariff hike:
- Textiles and clothing
- Gems and jewellery
- Shrimp and other seafood
- Leather and footwear
- Chemicals
- Electrical and mechanical machinery
How much were India's exports from these sectors in the last fiscal?
- Shrimp: USD 2 billion
- Organic chemicals: USD 2.7 billion
- Carpets: USD 1.2 billion)
- Apparel-knitted: USD 2.7 billion
- Apparel - woven: USD 2.7 billion
- Textiles, made ups: USD 3 billion
- Diamonds, gold and products: USD 10 billion
- Machinery and mechanical appliances: USD 7.7 billion
- Furniture, bedding, mattresses: USD 1.1 billion
- Vehicle and parts: USD 2.6 billion
What are the tariffs on India's trade competitors?
Here are the tariffs on India's trade competitors in the US market after the new levy:
- India: 50%
- Brazil: 50%
- Myanmar: 40%
- Thailand: 36%
- Cambodia: 36%
- Bangladesh: 35%
- Indonesia: 32%
- China: 30%
- Sri Lanka: 30%
- Malaysia: 25%
- Philippines: 20%
- Vietnam: 20%
(With PTI inputs)
Also Read: 'Billions of dollars flowing into USA': Trump after tariffs come into effect in India, other nations
Also Read: 'I know I'll have to pay a personal price, yet…': PM Modi's strong message in face of Trump tariffs
