US to collect 25% reciprocal tariff on Indian goods from Thu - White House
This story was originally published at 13:22 IST on 1 August 2025
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NEW DELHI – The US will start collecting reciprocal tariffs of 25% on all Indian goods from Thursday, the White House said in its latest executive order. US President Donald Trump on Wednesday had announced the 25% extra duty on India.
However, shipments to the US that are in transit, or leave Indian shores before Aug. 7, would be exempt from the 25% tariff till Oct. 5, according to the order. These in-transit goods will continue to attract the extra 10% duty, which was announced in April.
"What sets this action apart is that, unlike many other trading partners, India has been denied all product-level exemptions—even for products and sectors, the US exempted goods from other countries," Global Trade Research Initiative said in a note. Washington has exempted some sectors, like pharmaceuticals, energy products, critical minerals, and electronics and semiconductors, from reciprocal tariffs. But the exemptions do not apply to Indian-origin goods from these sectors.
The US' latest executive order detailing reciprocal tariffs on imports from various countries has rates ranging from 10% to 41%. To mention, Trump has already imposed additional sector-wise duty on steel and aluminium goods, and auto products.
Quick estimates suggest that India's goods exports to the US in 2025-26 (Apr-Mar) may fall 30% to $60.6 billion from $86.5 billion in FY25, according to the Global Trade Research Initiative. Most affected categories will be petroleum products, pharmaceuticals and electronics, as each of these have high import content and low domestic value add, GTRI said. India had a trade surplus of $40.82 billion with the US in FY25, according to commerce ministry data. End
US$1 = INR 87.46
Reported by Krity Ambey
Edited by Tanima Banerjee
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