Union Minister of State for Finance Pankaj Chaudhary.
Credit: PTI Photo
New Delhi: A combination of different factors, including demand, quality, and contractual arrangements, would determine the impact of Trump tariffs on India’s exports, Parliament was informed on Monday.
In a written reply to a question in the Lok Sabha, Minister of State for Finance Ministry Pankaj Chaudhary said the government attaches the utmost importance to protecting and promoting the welfare of farmers, entrepreneurs, exporters, MSMEs and will take all necessary steps to secure our national interest.
"A combination of different factors, such as product differentiation, demand, quality, and contractual arrangements, would determine the impact on India’s exports," he said.
The minister was replying to a question about whether the government has made any assessment on the impact of the USA's reciprocal tariff threat on Indian goods.
He informed that a reciprocal tariff at the rate of 25 per cent is proposed to be imposed on certain goods exported from India to the USA starting from August 7. US President Donald Trump has also announced an additional 25 per cent tariff, to be effective from August 27. With this, the total tariff on Indian goods is now 50 per cent.
"It is estimated that around 55 per cent of the total value of India’s merchandise exports to the US will be subject to this reciprocal tariff," he said.