(Commonwealth_India) This week brought a moment of quiet relief to thousands of Indian exporters, a relief that may not make headlines, but is crucial for their business operations. The government shared that, as of now, there are no new US tariffs on Indian pharmaceuticals or electronics. While this may seem like a minor change in the grand scheme of global trade, it provides a welcome respite for those who engage in this work on a daily basis in an otherwise unpredictable world.
This reassurance came from Minister of State for Commerce and Industry Jitin Prasada in a written reply to the Lok Sabha. He explained that while the United States has indeed introduced new tariffs—25% on certain Indian exports beginning August 7, and another round taking effect on August 27—sectors like pharma and electronics remain untouched for the moment. That’s no small thing. These industries power huge parts of India’s economy and support millions of livelihoods.
Imagine a small pharmaceutical manufacturer in Ahmedabad, who’s spent decades building trust with buyers in the US. Or a mid-sized electronics exporter in Pune, shipping components to tech companies halfway across the world. For them, this update isn’t abstract. It means fewer sleepless nights, fewer tough conversations with staff, and fewer plans shelved out of fear.
Still, the broader picture isn’t without concern. The government estimates that these new tariffs now impact around 55% of all goods India exports to the US. This means that over half of the total value consists of goods that now have higher costs to enter American markets. This will significantly impact some exporters, especially those already navigating the challenges posed by years of pandemic-related disruptions, global inflation, and supply chain chaos.
The government says it’s listening. Prasada made it clear that officials are actively engaging with exporters, trade bodies, small businesses, and industry voices across the country to understand how these changes are playing out on the ground. It’s not just about economics; it’s about real people. Workers in industrial towns rely on steady export orders. Small business owners are juggling costs and payroll. Young professionals are hoping to keep their jobs in export-linked sectors.
Behind the policy responses are efforts to protect these very people. India is also in the middle of trade negotiations with the United States, aiming for a more stable, long-term agreement. Talks started in March 2025 and have already gone through five rounds. The most recent round took place in Washington in mid-July, with the next scheduled for later this month in India. The goal is to create a future where trade isn’t so volatile, where tariffs aren’t used like weapons, and where both sides know what to expect.
In the meantime, the Indian government states that it’s monitoring the fallout from the existing tariffs and working to mitigate the impact. This involves assisting businesses in discovering new markets, leveraging export promotion schemes, and encouraging product diversification to ensure that no single disruption can bring down an entire business.
This is more than just a story about trade policy. It’s about families sitting around kitchen tables trying to figure out what happens next. It’s about small factory owners looking at rising costs and wondering if they’ll have to let someone go. It’s about young entrepreneurs who dared to dream about building something global and now have to pause and reassess.
So yes, pharmaceuticals and electronics have been spared for now. That doesn’t solve everything, but it gives thousands of people across the country something they haven’t had much of lately: a little bit of breathing room. This extra time allows them to strategize, progress, and persevere.
And sometimes, that’s more than enough to make a difference.
