Industry body urges both governments to prioritize long-term trade partnership; hopes for early resolution through ongoing bilateral trade talks
New Delhi, July 30, 2025: The Federation of Indian Chambers of Commerce and Industry (FICCI) has expressed deep concern over the recent announcement by U.S. President Donald Trump to levy a 25% tariff and impose secondary sanctions on Indian exports starting August 1, 2025.
Reacting to the decision, Mr. Harsha Vardhan Agarwal, President, FICCI, said:
> “FICCI is disappointed by the decision taken by the U.S. to levy 25% tariff on exports from India and impose secondary sanctions. While this move is unfortunate and will clearly impact our exporters, we remain hopeful that this will be a short-term disruption and that a permanent trade deal between both countries will be reached soon.”
He emphasized the strength and potential of the India-U.S. strategic partnership, which spans across sectors such as technology, defence, energy, and advanced manufacturing.
> “There is immense scope for cooperation, and we are confident that the ongoing deliberations will lead to mutually beneficial outcomes once the contours of the final trade agreement emerge,” he added.
India and the U.S. have been negotiating a Bilateral Trade Agreement (BTA) since the beginning of 2025. While some U.S. demands reportedly conflicted with India’s national interest, the Indian government has taken a firm stance on safeguarding long-term priorities. A U.S. delegation is expected to visit India in the second half of August to continue discussions, with both sides aiming to conclude negotiations by September–October 2025.
Highlighting the importance of the U.S. market for Indian exporters across goods and services, FICCI reiterated its support for a comprehensive and enduring trade agreement, rather than a rushed deal with limited benefits.
> “As our Hon’ble Commerce and Industry Minister has rightly stated, India will prioritize national interests over deadlines in trade talks. The goal is to secure a durable and balanced agreement that benefits the Indian economy in the long run,” FICCI noted.
FICCI also underlined the reciprocal value of the India-U.S. trade relationship, pointing out that U.S. businesses benefit significantly from India’s large consumer base, skilled talent pool, and robust market potential.
