FICCI voices disappointment over US decision to impose 25% tariff on export from India

The Federation of Indian Chambers of Commerce and Industry (FICCI) has voiced strong disappointment over the United States recent decision to impose a 25% tariff and secondary sanctions on exports from India, effective from August 1, 2025. The announcement, made by US President Donald Trump, has sparked concern among Indian exporters, with FICCI warning that the move could have a significant impact on bilateral trade.

Harsha Vardhan Agarwal, President of FICCI, said: FICCI is disappointed by the decision taken by the US to levy a 25% tariff on exports from India and impose secondary sanctions. While this move is unfortunate and will have a clear bearing on our exports, we hope that this imposition of higher tariffs will be a short-term phenomenon and that a permanent trade deal between the two sides will be finalised soon. He underscored the importance of the IndiaUS relationship, describing it as a long-standing partnership that encompasses key sectors such as technology, defence, energy and advanced manufacturing. There is a lot our two countries can achieve together, he added, expressing optimism that ongoing negotiations will yield outcomes beneficial to both nations.

India and the US have been engaged in negotiations for a Bilateral Trade Agreement (BTA) since the beginning of 2025. The US remains a critical market for Indian exporters, both in goods and services, and Indian industry is keen to establish a long-term, stable trade framework. FICCI reiterated the position of the Indian government that national interest will take precedence over arbitrary deadlines in the negotiation process. Our Honble Commerce and Industry Minister has made it clear that India will prioritise securing a comprehensive and beneficial pact over rushing into a deal that may have negative long-term consequences, Agarwal noted. He also highlighted the strategic significance of the Indian market for American companies, many of which rely on Indias demand, skilled workforce, and innovation capacity. India offers considerable opportunities for US businesses, and we believe this mutual interdependence should be reflected in a fair and forward-looking trade agreement, he concluded.

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