Unilateral Tariff Imposition of 25% by President Donald Trump, USA
IMC-ERTF a quick research response has made a brief preliminary observation of the Unilateral and additional Ad Valorem Tariff Duty @ 25% form 1st Aug’25. This measure additionally compounded by penalty rates for trading with other countries.
IMC-ERTF has started (a) assessing the situation sector wise and simultaneously (b) work out deepstick solutions to address the situation, in due consultation with affected industrial institution and even specific units in particular.
The following is the brief summary of the situation, with two helpful tables for reference.
| Product | Old Tariff | Now Difference | Total Exports in Crores |
|---|---|---|---|
| Automobile (+) Components | 23.1% | +1.9% | 1.07 Lakh Cr |
| Textiles and Apparels | 10-12% | 13%+ | 0.92 Lakh Cr |
| Gems and Jewelry | 8.2-10% | 15% | 0.87 Lakh Cr |
| Pharma | 8.6% | 16.4% | 0.86 Lakh Cr |
| Electronics | 18% | 7%+ | 0.77 Lakh Cr |
| Engineering Goods | 4.4%-5.09% | 12.5%+ | 0.24 Lakh Cr |
| Petrochemicals | 4%-8% | 17% | 0.34 Lakh Cr |
| Iron, Steel and Metals | 5.6%-12.5% | 12.5% | 0.24 Lakh Cr |
| Organic Chemical | 8.6% | 17% | 0.22 Lakh Cr |
Ref: World Integrated Trade Solutions Word Bank (2022-2025) update
Comparative analysis of the duty imposed by USA on India and other major suppliers of T&A to USA are as below:
| Country Name | Additional ad valorem duty (Applicable from 1st August 2025) |
|---|---|
| China | Negotiated to 10% until August 12 |
| Vietnam | 20% |
| India | 25% + Penalty |
| Bangladesh | 35% |
| Indonesia | 19% |
| Pakistan | 29% USA and Pakistan have concluded a deal which will likely reduce the tariff. More details are awaited. |
Comments
Bharat’s approach has been product based, whereas USA approach has been opting for flat tariff.
Reference to the table, ERTF will be connectivising with the sector specific institutions and important units to carry out condensed advocacy for policy measures.
Request
This is being sent to various sector specific industries.
Kindly start sending your responses on ........
This is will give and integrated participation to get solution and way out and keep up India’s competitive position in exports and reduce impact on our industries of these measures.
Thank you in expectation of response.