Trump tariffs: FICCI expresses concern over 25 pc duty and sanctions

The Federation of Indian Chambers of Commerce and Industry (FICCI) has expressed disappointment with the decision of US President Donald Trump to impose a 25 per cent tariff and secondary sanctions on Indian exports, effective from August 1.

FICCI President Harsha Vardhan Agarwal said in a statement that the decision could have a significant impact on India’s outbound trade.

“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,” Agarwal said.

Also read: Trump announces 25% tariff plus penalty on India starting August 1

Hope for progress in trade negotiations

FICCI underscored the longstanding partnership between India and the US, pointing to deepening engagement in sectors ranging from technology and defence to energy and advanced manufacturing.

“There is a lot our two countries can achieve together,” Agarwal stated, expressing optimism that the ongoing deliberations would lead to mutually beneficial outcomes once a final trade agreement is reached.

India and the US have been negotiating a bilateral trade agreement since the beginning of 2025. However, some of the demands made by the US are being seen as incompatible with India’s national interests, prompting the Indian government to hold its ground.

A US delegation is expected to visit India in the latter half of August to continue discussions, with hopes of concluding the deal by September or October.

Also read: 5 reasons why Trump has imposed 25 pc tariff on India

Balancing trade gains with national priorities

While acknowledging the US as a critical market for Indian goods and services, FICCI agreed with the stance of India’s Commerce and Industry Ministry that national interest must remain the guiding principle in trade talks.

“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 emphasised.

FICCI also reminded stakeholders that India represents a substantial market for American companies, many of which gain from the country’s demand dynamics and talent pool. The industry body reiterated its call for a stable, long-term trade framework that benefits both sides and strengthens economic cooperation.