Trump unveils 25% tariff on Indian goods from August 1, citing trade imbalance and Russia-related concerns.
In a significant move with far-reaching consequences, US President Donald Trump has announced a 25% tariff on all goods imported from India, effective August 1, 2025. The decision affects nearly $87 billion worth of Indian exports annually and has raised concerns across economic and diplomatic circles.
The White House cited two primary reasons for the action: the large US-India trade deficit and India’s continued energy and defence dealings with Russia. President Trump claimed on social media that India’s tariffs on American products remain unreasonably high and accused New Delhi of being one of the largest buyers of Russian energy, undermining efforts to end the war in Ukraine.
Key Indian export sectors, electronics, pharmaceuticals, garments, auto components, and jewellery, are likely to bear the brunt of this decision. India, which recently became the top iPhone exporter to the US, now faces the risk of supply chains shifting to other Asian countries like Vietnam or Mexico.
While nations such as Japan, South Korea, and the UK also faced increased tariffs, India received the highest rate among all.
Despite years of diplomatic engagement and economic cooperation, including tariff concessions and increased US imports, the move caught New Delhi off guard. The Indian government has expressed disappointment but refrained from immediate countermeasures, instead opting to assess the impact and continue dialogue.
Experts believe this could be a negotiation tactic, but it marks a sharp turn in US-India trade relations, raising questions about trust and long-term stability.
Source: India Today
