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Trump Imposes 25% Tariffs, Penalty on India

US President Donald Trump Wednesday imposed a 25% tariffs along with additional penalties of unknown amount on all imports from India effective August 1, 2025

Thursday July 31, 2025 2:30 AM, ummid.com News Network

Washington: US President Donald Trump Wednesday imposed a 25% tariffs along with additional penalties of unknown amount on all imports from India effective August 1, 2025.

In a social media post Trump said India is a friend, but cited its continued oil imports from Russia and longstanding trade barriers as key reasons behind the decision.

August 1 is the deadline Trump had set for reciprocal tariffs on dozens of countries, including India.

Trump had announced the reciprocal tariffs in April on, what the U.S. President called Liberation Day, but were then paused to allow for talks.

“Remember, 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.

Trump also pointed to India’s defense and energy ties with Russia.

“They have always bought the vast majority of their military equipment from Russia and are one of Russia’s largest energy buyers, along with China, at a time when the world wants Russia to stop the killing in Ukraine — all things not good!

“India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August 1st. Thank you for your attention to this matter. MAGA!” Trump said.

US Tariffs on Indian Goods

The trade deficit between India and the USA is in favour of India. After Trump's tariffs the impact will be:

• Electronics and Smartphones: Expected to face a 26% tariff, potentially reducing India’s exports by 12% ($1.78 billion).
• Seafood (e.g., frozen fish, shrimp): Previously duty-free, now subject to a 26% tariff, with an expected 20.2% export decline ($404.3 million).
• Gold, Jewelry, and Diamonds: Facing a 26% tariff, exports may decline by 15.3% ($1.82 billion). Current duty is around 2.1%.
• Vehicles and Auto Parts: Currently at 1% duty but expected to face a 25% tariff, leading to a 12.1% export decline ($339.4 million).
• Dairy Products: High tariffs, e.g., 56.46% on buttermilk and fermented milk, 30.84% on milk powder.
• Textiles and Apparel: Tariffs up to 28.2%.
• Footwear: Tariffs range from 20.8% to 29.51%
  

Meanwhile, soon after Trump's announcement, External Affairs Minister S Jaishankar held a meeting with Commerce Minister Piyush Goyal.

Trump's decision to impose tariffs and penalties on India came days after the United States signed trade deal with China, Japan, United Kingdom, European Union (EU) and some other countries.

There were also reports of talks on trade deal between India and the United States. However, no final agreement could be reached.

On the other hand, the goverment critics, including senior BJP leader and former Union Minister Yashwant Sinha, called Trump tariffs insult to India.

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