Multiple factors to influence impact of Trump’s tariffs on Indian exports: MoS finance
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Minister of State for Finance Pankaj Chaudhary on Monday told Parliament that the effect of US President Donald Trump’s proposed tariffs on Indian exports will depend on a range of factors, including demand, product quality, and contractual terms.
Responding to a question in the Lok Sabha on whether the government had assessed the impact of the United States’ reciprocal tariff threat, Chaudhary said, “A combination of different factors, such as product differentiation, demand, quality, and contractual arrangements, would determine the impact on India’s exports.”
He assured that the government places “utmost importance to protecting and promoting the welfare of farmers, entrepreneurs, exporters, and MSMEs” and will take all necessary steps to safeguard the national interest.
According to Chaudhary, the US plans to impose a reciprocal tariff of 25% on certain Indian goods.
In addition, President Trump has announced a further 25% tariff effective from August 27, bringing the total duty on the affected Indian exports to 50%.
“It is estimated that around 55% of the total value of India’s merchandise exports to the US will be subject to this reciprocal tariff,” he informed.