India's Exports to the US Face High Reciprocal Tariffs

India's export landscape faces a significant challenge as 55 percent of its merchandise exports to the US will contend with a 25 percent reciprocal tariff. Minister of State for Finance, Pankaj Chaudhary, underscored the importance of safeguarding the interests of exporters and entrepreneurs, promising government action to protect national interests.

In response to parliamentary inquiries, Chaudhary highlighted diverse factors such as product differentiation, demand, and quality, which will determine the impact of these tariffs on India's export performance. He assured that the government is prepared to address these challenges to promote the welfare of farmers, MSMEs, and the broader exporting community.

These developments follow the announcement by US President Donald Trump of an additional 25 percent tariff on Indian imports, effective August 27. This compounds the tariffs, raising the total to 50 percent, and poses a complex scenario for Indian exporters seeking to maintain market share in the US.

(With inputs from agencies.)