Minister of State for Commerce and Industry Jitin Prasada has clarified that Indian electronics and pharmaceutical exports are not facing any new US tariff hikes. Addressing Parliament, he said that while the US has recently increased duties on certain Indian products imposing a 25% reciprocal tariff from August 7 and an additional 25% ad valorem duty on various exports from August 27 these measures do not currently apply to the electronics or pharmaceutical sectors.
According to Prasada, both industries remain exempt from the latest round of tariff increases, even though around 55% of India’s overall merchandise exports to the US are now affected by the new duties.
He added that the government is actively tracking the situation, engaging with industry stakeholders and working on strategies for export promotion and market diversification to reduce potential adverse effects. Negotiations for a bilateral trade agreement intended to ensure long-term tariff stability are ongoing, with the sixth round of discussions set for late August.
For now, Indian smartphones, other electronics and pharmaceutical products continue to enter the US market without extra tariff burdens, though Prasada noted that the scenario could change depending on the outcome of ongoing talks and trade reviews.
