Trump's 10% Global Tariff from August 1: What It Means for India (Source: X (Facebook))
U.S. President Donald Trump has once again stirred up global trade. Starting from August 1, 2025, a new 10% tariff will be imposed on imports from 100 countries. This has been confirmed by U.S. Treasury Secretary Scott Bessent. This move is being considered a major shift in America’s global trade policy. Many countries, including India, could come under the scope of this new tariff.
The United States has decided that from August 1, it will impose a 10% reciprocal tariff on goods coming from around 100 countries. Speaking to Bloomberg Television, Scott Bessent said, “We’ll see how President Trump deals with countries that are negotiating in good faith. But for now, at least a 10% tariff will be applied on 100 countries, and discussions will move forward from there.”
President Trump has signed detailed tariff letters addressed to 12 countries in a “take it or leave it” manner. These countries are said to include India, Japan, and some European Union nations, although Trump has refused to disclose the names. These letters will be formally dispatched on Monday.
The aim of this tariff is to promote American exports and tilt trade conditions in favor of the United States. However, imposing tariffs on such a large scale is being seen as one of the most aggressive trade policies in decades, as it will impact nearly half of the world’s countries.
This news is particularly worrisome for India. Currently, India enjoys a 26% tariff exemption on its goods in the U.S., but this exemption is set to end on July 9. If no new trade agreement is reached by then, a heavy tariff could be imposed on Indian goods starting August 1.
In recent weeks, discussions between India and the U.S. have intensified. Indian officials have returned from talks in Washington, but no deal has been finalized yet.
The biggest sticking point in the talks between India and the U.S. is the agriculture and dairy sectors. The U.S. wants India to open its agriculture and dairy markets to genetically modified (GMO) imports. On the other hand, India is demanding greater access for its labor-intensive exports like textiles, leather, and gems in the U.S. market. Additionally, the U.S. has flatly refused to offer any relief on steel tariffs for India or any other country.
This tariff could be a major setback for India, as the U.S. is a key export market. Sectors like textiles, leather, gems, and jewelry could suffer significant losses. If the tariff is imposed, Indian goods will become more expensive in the U.S. market, potentially leading to reduced demand. There is now limited time for Indian businesses and the government to respond. If no agreement is reached by July 9, the tariff will begin to take effect from August 1.
Experts believe that the Indian government is now under pressure to quickly reach an interim agreement with the U.S. However, India also needs to protect its interests in the face of America’s tough conditions — especially in the agriculture and dairy sectors, where India remains cautious about altering its policies.
The coming weeks will be crucial for India-U.S. trade relations. If no agreement is reached, Indian exporters could face major losses.
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