New Delhi, July 31
Citing India's higher tariffs on American goods, US President Donald Trump has declared a 25 per cent tariff on Indian imports. However, shipments worth over $25 billion, primarily of smartphones and pharmaceuticals, are currently exempted from these higher tariffs.
Pharmaceuticals and electronics (primarily smartphones) accounted for $10.5 billion and $14.6 billion of India's total exports to the US in FY25, respectively.
Trump has not yet included these key industries in the new tariffs that are slated to come into effect from August 1.
India's exports to the US have increased since January this year, as a result of this exemption because there are no duties on these goods.
From January to June 2025, the US's percentage of India's merchandise exports increased from 17-18 per cent to over 20 per cent.