Exporters Seek Govt Relief Against US Tariff Impact

27-Aug-2025 08:46 PM

New Delhi. As expected, a hefty import duty of 50 percent has come into effect on many Indian products in the US from today i.e. 27 August, due to which Indian exporters will face a lot of difficulty in sending their products there because India's product will become expensive there compared to other competing countries.

Exporters are urging the government to announce immediate relief measures to remove this discrepancy. On August 26, a notification was issued to impose an additional duty of 25 percent on India in the US, whereas earlier a tariff of 25 percent was imposed on August 7. In this way, the total tariff has now become 50 percent.

This high customs duty is likely to badly affect the export of many Indian products to the US, which will reduce its production in India and increase unemployment.

America is India's largest trading partner. During the financial year 2024-25, 20 percent of the total exports from India were sent to the US only.

The US has allegedly imposed the highest tariff on India because of its purchase of petroleum and defence equipment from Russia, but the reality is that the US wants to force India to open its market for its GM food products - mainly maize and soybean. India has already refused this.

The government is well aware of the difficulties faced by exporters and the concerns of the indigenous industry and is considering various alternative measures to neutralise the US tariff.

In fact, there is a danger of many problems arising simultaneously in India due to the US tariff and production in many factories may come to a halt.