Washington2 minutes ago
- Copy link
After assuming office on January 20, Trump issued an executive order related to the tariff.
US President Donald Trump has announced a 25% tariff on India. This will be applicable from 1 August 2025. He informed about this in a post.
Trump said-
India is our friend, but we did not do much business with him in the last several years, because their tariffs are very much. Also, they have very strict and disturbing. In addition, India always buys most of its military things from Russia and is Russia’s largest oil buyer with China. All this is happening when everyone wants Russia to stop the war in Ukraine. This is not all right! Therefore, India will have to pay 25% tariff from August 1 and due to the above mentioned things, penalty will also be imposed. Thank you for paying attention to this. Make America Great Again!
On the decision of President Trump, the Government of India has said that we are understanding its impact and will take every necessary steps to save the interests of the country.
Here we are explaining this whole matter in easy language in question and answer….
Question 1: What is this tariff and why did Trump impose India?
answer: Tariff means import duty. When a country buys goods from another country, it imposes some tax on it, it is called tariff. Trump says that India charges a lot of tariffs on American goods, while the US imposes less tax on Indian goods.
Trump feels that this is unfair. Therefore, he has announced to impose 25% tariff on India under his “mutual tariff” policy. He says that India imposed more tax on their goods, so now they will also impose heavy tariffs on India’s goods. Also, Trump has expressed displeasure over India buying oil and military equipment from Russia.
Question 2: When will this tariff come into force and what will be the effect on India?
answer: Trump announced on his social media platform Truth Social on Wednesday that this 25% tariff would be applicable from 1 August 2025. This means that 25% tax will be levied on goods going from India to America, such as medicines, clothes and engineering products. This will make Indian goods expensive in America. Their demand may decrease. India’s trade surplus with the US (export more, imports) may also be reduced.
Question 3: Trump had talked about tariff earlier, was it implemented?
answer: Yes, Trump had said to impose 26% tariffs on India in April 2025, but later postponed it till 1 August. Now again Trump has talked about 25% tariff. Along with this, he has also talked about putting penalty. But he did not clear what this penalty would be or how much.
Penalty may mean that additional taxes should be imposed on certain goods or sectors in India, or some special business concessions should be abolished. For example, this penalty can be in the form of more tariffs or strict rules on India’s pharma, textile or other large exports.
Trump imposed tariffs on countries around the world in April 2025. India was imposed 26% tariff. However, it was later postponed till August.
Question 4: How far did the trade deal between India and America reach?
Answer: India and America have been working on a trade deal for a long time. Trump had given the deadline of August 1 that if the agreement was not reached by this date, the tariff would be applicable. India has appealed to increase this deadline, as on August 25, the US team will come to India and the sixth round of talks will take place.
Indian officials are expecting a major agreement by September or October. But some issues have not yet agreed, such as agriculture and dairy sector. India is not ready to open genetically modified crops and dairy markets.
Question 5: What has India reacted to this?
answer: The Ministry of Commerce said- We have seen the statement of the US President’s business. We are studying its impact. India and America are working on a good and beneficial trade agreement for both. We are ready to fulfill this purpose.
Question 6: Why is Trump calling India a friend, yet why tariff?
answer: Trump said many times that India is his friend and he also claimed that India ceased with Pakistan at his behest. In the case of tariffs, Trump wants America not to harm trade under the “US First” policy. He says that India imposes up to 100% tariffs on American goods, which is wrong. Therefore, they also want to put tariffs on India. Also, India has displeasure over buying oil and weapons from Russia.
Question 7: Is this tariff only on India, or is the country on target?
answer: This is not just a matter of India. Trump has announced a tariff on several countries. For example, 34%on China, 46%on Vietnam, 32%on Taiwan, and 49%tariff on Cambodia. Canada and Mexico have got some discounts, but they also have tariffs in sectors like auto and steel. Trump’s policy is that the country which imposes more tax on America, will have to pay the same tax.
Question 8: What will be the effect on the common man?
answer: It will directly look less on the common man, but some things can be expensive in the long run. If Indian goods are expensive in the US, then India’s exports may be reduced, which will harm some companies. Especially pharma, textile, and engineering sector companies may be affected. This can affect jobs and economy. On the other hand, if India also imposes counter tariffs, American goods, such as Apple phones or other imported products may be expensive in India.
Question 9: What will India do now?
answer: There are two ways in front of India.
- First, he will try to make a business agreement with the US quickly, so that the tariff can be avoided.
- Second, if the conversation fails, India can also put a counter -tariff on American goods, as Canada did. But India will try to solve the matter with diplomacy, as America is the largest business partner in India.
In 2024, India sold goods worth $ 87.4 billion to the US, while imported from the US $ 41.8 billion. In such a situation, agreement is necessary for both countries.
Question 10: Will this tariff really apply, or is it just a threat?
answer: This time Trump has clearly spoken about 25% tariff on Truth Social and has also given the date. But Indian officials are considering this as a temporary step, as business talks are still going on. Trump has already threatened tariffs earlier and has retreated many times. So this threat can also be a strategy to create pressure, so that India gives more concessions in the trade agreement. However, if the agreement is not reached, then the tariff is likely to be implemented.
