US tariff impact: India exploring alternative markets, says MEA official

India is scouting new export destinations in South Asia, Africa, and Latin America after US imposed additional tariffs on goods over Russian crude oil imports

India is exploring new markets for its exports—both goods and services—as a diversification strategy amid the United States’ decision to impose additional tariffs on Indian exports, said Dammu Ravi, Secretary (Economic Relations), Ministry of External Affairs.

 

Ravi called the US decision to levy high tariffs a unilateral move without logic, but expressed confidence that ongoing negotiations would yield mutually beneficial outcomes. He was speaking to the media on the sidelines of a conference on India–Brazil relations in Mumbai.

 

US President Donald Trump on Wednesday announced an additional 25 per cent tariff on Indian goods exported to the US, citing India's import of Russian crude oil. These are over and above the earlier 25 per cent duties, and will come into effect from 7 August 2025. The new duties will be enforced 21 days after the announcement.

 

Ravi said the higher tariffs do not significantly deter Indian industry. “We are looking at opportunities, but also new markets. So, if the US becomes difficult to export to, then you will automatically look at other opportunities—within our own region, in South Asia, Africa, the Middle East, and Latin America. These are potential areas. I think it’s very natural for countries to look for alternatives,” he said. 

 

“It is a unilateral decision and I don’t think there was any logical reason in the way it was done. The US and India are strong strategic partners. We have had a complementary relationship all this while.”

 

Ravi added that leaders and businesses on both sides continue to explore opportunities and this may be a temporary phase. “The negotiations are still going on, so we are confident that solutions will be found in the course of time,” he said.

 

He confirmed that the Ministry of Commerce is leading the discussions. “Those negotiations have not stopped. They will continue and are very close to finding a solution. The momentum had taken a temporary pause, but it will continue,” Ravi said.

 

Responding to a question on India working with Brazil and other BRICS countries against the tariffs, Ravi noted that nations across the globe, including BRICS members, are affected. “When you are hurt or affected by tariff walls in one part of the world, countries will naturally look for alternatives. This is a temporary aberration—a problem that countries will face,” he said.

 

“But in the course of time, we are confident that the world will find solutions. Like-minded countries will look for cooperation and economic engagement that will be mutually beneficial for all sides,” Ravi added.