The Federation of Indian Chambers of Commerce and Industry (FICCI) has expressed disappointment over US President Donald Trump’s decision to impose a 25 per cent tariff along with secondary sanctions on exports from India, effective August 1.
Reacting to the announcement, Harsha Vardhan Agarwal, President, FICCI, 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.”
Also Read:India-US Trade Deal: Trump slaps 25% tariff on India from August 1, cites high trade barriers and Russia ties
Trade relations have depth and potential, says FICCI
Agarwal further emphasised the significance of bilateral ties. “India and US have a long-standing partnership, which is strengthened by our deepening engagement across an array of areas from technology to defence to energy and advance manufacturing. There is a lot our two countries can achieve together, and FICCI is confident that following the detailed deliberations that are currently underway, we will see beneficial outcomes for both countries when the contours of the final trade agreement will emerge,” he added.
India has been in active negotiations for a Bilateral Trade Agreement (BTA) with the US since the beginning of the year. According to an IANS report, US demands have been deemed incompatible with India’s national interests, prompting the government to hold its ground. A US delegation is expected to visit India in the latter half of August to resume talks, with hopes of concluding negotiations by September–October 2025.
Also Read:Piyush Goyal meets S Jaishankar after Trump’s 25% tariff move
Industry seeks long-term trade pact, not rushed seal
FICCI underscored that the US remains a vital market for Indian exporters, both in goods and services. The industry body reiterated the government’s stance that national interest will take precedence over deadlines. “The aim is to secure a beneficial pact rather than a hurried deal that gives short term benefit but may result in adverse outcomes in the long term,” the statement noted.
India, in turn, provides a significant market for US companies, many of which benefit from the country’s demand ecosystem and vast talent pool.
Also Read:US President Donald Trump calls India ‘friend’ but criticises trade imbalance, warns of 25% tariff
Trump’s tariff announcement on Truth Social
Earlier in the day, Trump made the tariff announcement on his platform Truth Social, stating that a 25 per cent tariff would be levied on Indian imports starting August 1, alongside a penalty for India’s continued purchase of military equipment and energy from Russia.
“Remember, while India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high,” Trump wrote in his post. He claimed that India imposes “the most strenuous and obnoxious non-monetary trade barriers” compared to any other nation.
Criticism over Russia ties amid Ukraine war
Trump also criticised India for its ongoing defence and energy ties with Russia. “At a time when everyone wants Russia to stop the killing in Ukraine, these things are not good,” he said. “ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25 per cent, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!” he added.
Last week, Finance Minister Nirmala Sitharaman indicated that trade negotiations with the US were “progressing well.” Her comments came just ahead of Trump’s tariff announcement.
India last concluded a Free Trade Agreement (FTA) with the United Kingdom. Commerce and Industry Minister Piyush Goyal had called the India–UK FTA a “game-changing” pact that brings substantial benefits for farmers, MSMEs, young professionals, and fishermen.
