The White House has issued an executive order modifying the scope of America’s reciprocal tariffs, exempting certain imports such as graphite, pharmaceuticals, and bullion, while adding new categories including resin and silicone.
For India, the standout is graphite — a critical anode material in lithium-ion batteries, central to the global electric vehicle (EV) industry. The U.S. decision to allow duty-free imports of Indian-origin graphite comes at a time when tariffs on Chinese graphite have surged to as high as 160 per cent, creating a rare cost advantage for Indian suppliers.
Industry leaders see the move as a breakthrough. Vikram Handa, Managing Director of Epsilon Advanced Materials, described the exemption as a “turning point” in India–US trade in clean energy.
“Epsilon Advanced Materials welcomes the U.S. administration’s move to grant zero-duty treatment to EV battery critical inputs such as graphite. This step will not only unlock fresh investments and accelerate industry growth, but also significantly reduce America’s reliance on China,” Handa said.
He added that the tariff shift positions India as a “dependable and competitive partner” in the American EV battery supply chain, enabling U.S. manufacturers to scale production more efficiently while strengthening supply chain resilience.
However, trade experts caution that the exemption is not automatic. Duty-free access is contingent on a framework agreement between the U.S. and India, requiring enforceable commitments on fair trade, reciprocity, and alignment with U.S. economic and national security priorities. Final approval rests with the U.S. Secretary of Commerce and the U.S. Trade Representative.
For India, the development presents both an opportunity and a challenge. If New Delhi succeeds in securing such a framework, it could consolidate its role as a trusted partner in Washington’s clean energy push, boost graphite exports, and attract fresh investment into India’s advanced materials sector.
Analysts note that the decision has the potential to reshape global EV supply chains by diversifying away from China and strategically anchoring India as a key supplier in the U.S. market.
