New Delhi, Aug. 7 -- The Federation of Indian Export Organisations (FIEO) on Wednesday described the United States' decision to impose an additional 25 percent tariff on Indian goods as 'extremely shocking', warning that the move could affect more than half of India's exports to its largest trading partner.

"This is a severe setback for Indian exports, with nearly 55 percent of our shipments to the U.S. directly affected," said FIEO Director General Ajay Sahai. "The 50 percent tariff places Indian exporters at a 30-35 percent competitive disadvantage compared to countries facing lower duties."

Key sectors expected to bear the brunt of the tariff hike include textiles, leather, and marine exports-industries largely driven by MSMEs.

"For...