On 30 July 2025, U.S. President Donald Trump announced a 25% tariff on goods imported from India starting August 1, along with an unspecified penalty for India’s continued purchase of Russian oil and arms.
- The move targets India more harshly than other countries, risking a major setback in U.S.-India trade talks.
- Trump cited India’s high tariffs and non-monetary trade barriers, and its strong defense and energy ties with Russia.
- India responded that it is reviewing the impact and remains committed to a fair bilateral trade deal.
- The tariff is expected to hurt Indian exports, especially in textiles, footwear, furniture, and pharmaceuticals.
- The U.S. has a $45.7 billion trade deficit with India; Indian exports to the U.S. were $87 billion in 2024.
- The announcement could strain relations, already tense due to Trump’s ties with Pakistan and stalled trade negotiations.
