Updated 1 August 2025 at 17:16 IST
Trump’s Tariffs on Indian Goods ‘Unfortunate but Likely To Have Short Term Impact,’ Says EY India
The U.S. has imposed 25% tariffs on Indian goods, impacting key export sectors. EY India's Vimal Pruthi says the effect may be short-term, as both nations are negotiating a trade deal. India is urged to respond calmly to avoid derailing talks. A pact is expected by late 2025.
The US administration’s decision to impose a 25% blanket tariff on Indian exports has sparked concern among trade experts, but the impact may be temporary as both nations continue to negotiate a Bilateral Trade Agreement (BTA).
Describing the move as “unfortunate,” Vimal Pruthi, Partner for International Trade at EY India, said the tariffs will likely hurt key export sectors such as textiles, gems and jewellery, FMCG, and engineering goods in the short term. However, he remained optimistic that the situation would ease once a trade deal is reached.
"India and the US are already in discussions for a trade agreement. We can expect a resolution in the coming months," Pruthi told ANI. He cautioned against retaliatory measures, warning that aggressive steps could derail ongoing negotiations.
"While India has the option to impose counter-tariffs, it’s important to act with maturity. Responding emotionally could jeopardize the larger goal of securing a favourable trade pact," he said.
Also Read: New Trump Tariffs To Kick In From August 7: Canada, India Among 70 Countries Facing Duties| Full Country‑Wise Breakdown | Republic World
President Donald Trump had earlier announced the 25% tariffs on Indian goods along with an unspecified penalty, despite expectations that a preliminary deal would be signed before the August 1 deadline.
Talks had previously stalled over US demands for greater access to India’s agricultural and dairy markets—sectors seen as politically and economically sensitive due to their broad employment base.
Commerce and Industry Minister Piyush Goyal addressed the issue in Parliament, stating that the government is assessing the impact of the tariffs and will act in the national interest.
“We give utmost priority to protecting our farmers, workers, exporters, and MSMEs,” he said.
Trump’s latest tariff action follows his April executive order mandating reciprocal duties on countries with which the U.S. runs a trade deficit. The initial tariffs, ranging from 10% to 50%, were held in abeyance for 90 days before being enforced from August 1.
India and the US began formal trade talks in March, with a target to finalise the first phase of the agreement by late 2025.
Published By : Avishek Banerjee
Published On: 1 August 2025 at 17:16 IST