In a move that could escalate trade tensions between two major economies, U.S. President Donald Trump has announced a 25% tariff on all imports from India, effective August 1, 2025. The decision was made public via Trump’s Truth Social platform on Wednesday, July 30.
Trump defended the move by pointing to India’s long-standing protectionist trade policies, which he described as a major obstacle to balanced trade.
“While India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high—among the highest in the world—and they have the most strenuous and obnoxious non-monetary trade barriers of any country,” Trump wrote.
Indian Exports May Face Additional Penalties
Beyond the blanket tariff, Trump hinted at additional penalties on Indian exports, though no specific products or penalty rates were identified. The lack of clarity has raised uncertainty for Indian exporters and U.S. importers alike.
FTA Talks Continue Despite Tariff Threat
The tariff announcement comes amid ongoing trade negotiations between the U.S. and India. An unnamed Indian government official confirmed that a U.S. delegation is expected in New Delhi in mid-August to continue discussions on a potential Free Trade Agreement (FTA).
“The imposition of the 25% tariff on Indian exports to the U.S. could be a temporary measure during the course of FTA talks,” the official suggested.
India Yet to Receive Official Notice
As of July 31, India has not received a formal tariff letter from the U.S. government. However, sources say that similar notifications have been sent to at least 20 other countries, with all measures scheduled to take effect on August 1.
This development marks a significant shift in U.S.–India trade relations and could have ripple effects across sectors including pharmaceuticals, textiles, and engineering goods.
VietnamSteel by Hoa Sen Group
