New Delhi : The government is still involved in the discussions on the India-US Bilateral Trade Agreement (BTA) with Washington with the aim to expand trade and investment through tariff stability and long-term trade predictability, the Parliament was informed on Tuesday.
A reciprocal tariff at the rate of 25 per cent has been imposed on certain goods exported from India to the US, starting from August 7.
It is estimated that around 55 per cent of the total value of India’s merchandise exports to the US is subject to this reciprocal tariff.
Further, an additional ad valorem rate of duty of 25 per cent with effect from August 27, 2025, has been imposed on certain goods exported from India, Minister of State for Commerce and Industry Jitin Prasada said in a written reply to a question in Lok Sabha.
“No additional tariffs have been imposed on Indian exports to the USA in sectors like pharmaceuticals and electronics as yet,” he added.
According to the minister, a combination of different factors, such as product differentiation, demand, quality, and contractual arrangements, would determine the impact of reciprocal tariffs on India’s exports, including in the textiles sector.
“The government is engaged with all stakeholders, including exporters and industry, for taking feedback of their assessment of the impact of the reciprocal tariffs imposed by the USA. The government attaches the utmost importance to protecting and promoting the welfare of farmers, workers, entrepreneurs, exporters, MSMEs and all sections of industry,” the minister emphasised.
India-US BTA negotiations were launched in March 2025. Five rounds of negotiations have been held, the last being from July 14-18 in Washington, DC.
New Delhi has reiterated that the latest tariff actions by US President Donald Trump are “unfair, unjustified and unreasonable”. “We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India,” the government had said in a statement.
“It is, therefore, extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,” according to the statement.
