FICCI Expresses Disappointment Over US Tariff Hike, Urges Swift Trade Resolution

Reacting to the development, FICCI President Harsha Vardhan Agarwal said, “FICCI is disappointed by the decision taken by the US to levy 25 per cent tariff on exports from India"

Trump’s decision comes amid his renewed focus on what he described as "unfair" trade practices by some of America’s closest partners

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The Federation of Indian Chambers of Commerce and Industry (FICCI) has voiced serious concern over the United States’ decision to impose a 25 per cent tariff, along with secondary sanctions, on Indian exports starting August 1. The announcement, made by former US President Donald Trump via Truth Social, has sent ripples across the Indian business community, with export-oriented sectors bracing for impact.

Reacting to the development, FICCI President Harsha Vardhan Agarwal said, “FICCI is disappointed by the decision taken by the US to levy 25 per cent tariff on exports from India and impose secondary sanctions. While this move is unfortunate and will have a clear bearing on our exports, we hope that this imposition of higher tariffs will be a short-term phenomenon and that a permanent trade deal between the two sides will be finalised soon."

Trump’s decision comes amid his renewed focus on what he described as "unfair" trade practices by some of America’s closest partners. He cited high Indian tariffs, non-tariff barriers, and India's continued strategic and economic engagement with Russia as reasons for the heightened trade action.

One of The Highest Tariffs

The 25 per cent tariff rate—one of the highest imposed on any country under Trump’s new trade agenda—places India among the most affected nations globally. The penalty further escalates concerns, particularly for high-growth Indian export sectors such as electronics, machinery, and chemicals.

Trade analysts say the move could put the brakes on India’s surging exports to the US, which reached $79.4 billion in 2024. With the US being India's largest export destination, the additional duties are expected to dent competitiveness and increase costs for Indian manufacturers.

Despite the setback, Indian industry leaders and trade bodies are urging calm and advocating for swift diplomatic engagement to de-escalate tensions and push forward a long-pending comprehensive trade agreement between the two countries.