The decision of America’s 25 percent tariff will not affect India much, as most Indian goods already fall under the category of American fee exemption. Sources associated with the government made this estimate on Friday (1 August 2025).
India’s big export is under exemption
Along with this, India has made it clear that it will not give any fee concession on agriculture, dairy and genetically enhanced (GM) food products in any trade agreement. According to sources, a large part of India’s total exports already come under the scope of exemption given by the US government under ‘Section 232’. In such a situation, the increased fee on those products will not apply.
Sources said, ‘More than half of exports from India to America will not be affected by this fee increase. The new tariff policy is expected to affect the export of about $ 40 billion. In the financial year 2024-25, bilateral trade between India and the United States stood at $ 131.8 billion. Export from India was $ 86.5 billion while imports from the US were $ 45.3 billion.
There will be no deal on agricultural business
Sources said, ‘Due to the use of animal fodder in the US dairy industry, it will not be possible for India to give a fee subsidy on them. Religious sentiments are connected in the dairy region. In such a situation, American dairy products will not be acceptable. India has not given a fee exemption on dairy products in any trade agreement so far. There will be no compromise on these sensitive areas.
There is talk on bilateral trade agreement between India and America from March. So far, five rounds of talks have been completed and the sixth round is going to start from 25 August. Although the two countries were trying to make an interim agreement before finalizing the bilateral trade agreement, some issues have not been agreed and the US has announced a 25 percent fee.
Also read: ‘Russia is a partner to live up to the test of time’, Foreign Ministry said on Trump’s penalty threat on India