New Delhi, July 31 -- In a significant development for bilateral trade, US President Donald Trump on Wednesday announced a 25 percent tariff on Indian exports, effective August 1, alongside an unspecified penalty related to India's defence and energy ties with Russia.

The move could adversely impact India's outbound shipments to the United States-its largest export market, which accounts for roughly 20 percent of total exports.

The announcement follows the failure of five rounds of negotiations between India and the US to conclude an interim trade agreement.

While terming the development as challenging, the Federation of Indian Micro and Small & Medium Enterprises (FISME), the national MSME body, is not unduly perturbed.

"MSME Exports...