US tariff hike on Indian exports ‘discriminatory’: Former Commerce Secretary

New Delhi, Aug 28: India’s former Commerce Secretary G.K. Pillai on Thursday termed the tariff imposed by the United States on Indian exports over oil trade with Russia as “discriminatory”, saying it has eroded India’s trust in American leadership.

Pillai noted that it is unfair to penalise only India when China, Europe, and even the US continue to trade with Russia. He pointed out that about 55 per cent of India’s exports will be subject to the new tariff, with industries like textiles, chemicals, jewellery, and seafood probably being the most affected.

“The exact consequences will be clear only in a month or two, but exporters are already working to cushion the blow,” the former bureaucrat told IANS.

He went on to say that exporters might be able to partially offset their losses by taking advantage of India’s sizable domestic market, especially its robust luxury sector.

Under President Donald Trump, the United States has raised tariffs on Indian goods by an additional 25 per cent since Wednesday, bringing the total tariff to 50 per cent. India’s exports of electronics and pharmaceuticals are still exempt, though.

According to government sources, New Delhi is in talks with exporters to look into ways to increase shipments of important goods to other markets, such as textiles, leather, jewellery, and gems. Measures to provide financial assistance to companies affected by increased taxes are also being considered.

Later this week, the Commerce Ministry is scheduled to meet with exporters from a variety of industries, including jewellery, gems, and chemicals, to talk about diversification tactics. The “Export Promotion Mission,” which was announced in the Union Budget 2025–2026, is being expedited by the ministry at the same time.

In the next two to three days, the ministry will hold consultations with stakeholders on expanding exports to new markets, according to an official.