The Ministry of Commerce and Industry has clarified that no additional tariffs have been imposed on Indian exports to the United States in the pharmaceutical and electronics sectors. As per a written reply in the Lok Sabha, this announcement would bring relief to exporters in these sensitive sectors facing concerns about possible duty hikes.
In the meantime, the Ministry said that other goods have been subjected to a reciprocal tariff of 25% from August 7 and that this applies to around 55% in value of India merchandise exports to the US. Furthermore, on August 27, the ad valorem duty of 25% on certain goods will come into being.
The government undertakes consultations with stakeholders, including exporters, MSMEs, and the industry, for the assessment of these measures. It was emphasised that top priority will continue to be given to protecting the interest of farmers, workers, entrepreneurs, and all sections of the industry.
On the trade diplomacy front, India and the US are continuing negotiations on a Bilateral Trade Agreement (BTA) aimed at enhancing market access, reducing tariff and non-tariff barriers, and improving supply chain integration. Talks began in March 2025, with five rounds completed so far the latest held in Washington from July 14 to 18. The US delegation is set to arrive in India by the end of August for the sixth round of Bilateral Trade Agreement negotiation.
The Department of Commerce is closely monitoring the situation to evaluate the potential repercussions of the tariff changes and is working on strategies to mitigate any adverse effects. Measures such as export promotion and market diversification are being explored to support affected industries.
