25% US tariff will be applicable on India from today (Social media)
National News: In a major move, US President Donald Trump has announced that starting from August 7, 2025, the United States will begin charging a 25% tariff on all imports from India. This sudden decision is expected to impact a large portion of Indian exports to the US and may create tension in the trade relationship between the two countries.
According to Trump, even though India and the US are friendly nations, trade between the two hasn’t grown as much as it should have. He said that this step is being taken to push India to negotiate better trade terms. If India doesn’t agree, its exporters will face financial losses due to higher taxes on their products in the US market.
Reports suggest that this decision could create economic pressure on India, forcing it to come to the negotiating table. Experts believe it may also affect diplomatic relations between the two nations.
Indian industries that send large amounts of goods to the US are likely to suffer. These include:
With the 25% tariff in place, Indian goods will become more expensive in American markets. This could reduce demand, leading to a drop in sales and profit for Indian companies.
In 2024, India exported goods worth nearly $87 billion to the US. The new tariff could affect a large share of these exports. Items like clothing, medicines, petrochemical products, gems, and jewelry might see a sharp decline in their competitiveness abroad.
The US currently has a trade gap of around $45.7 billion with India. American officials had earlier raised concerns about India's high import duties. For example:
In return, India may also choose to raise import duties on goods coming from the US. In 2024, India imported $42 billion worth of goods from America, including machinery, oil, coal, and gas.
Indian officials say they still see the US as a strategic partner, but India must also protect its domestic policies in sectors like agriculture, digital data, and public subsidies.
US Treasury Secretary Scott Bessent said that President Trump and his team are disappointed with how slowly India is handling the trade talks. He mentioned that while India did join the discussions early, progress has been limited.
He added, “We don’t know what India will do next. It’s up to them to respond.”
Bessent also pointed out India’s large oil imports from Russia. He said India refines Russian oil and sells it as fuel to other countries. Though India is not a major global oil player, this connection with Russia is raising concerns in the US.
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