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- Trump IMPOSES 25% Tariff on Indian Goods from 1 August: Us Market Pris to Rise, India’s Trade Surplus at Risk
New Delhi4 minutes ago
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On July 30, US President Donald Trump announced 25% tariff on India.
The goods sent from India to America will be charged 25% from today. On July 30, US President Donald Trump announced it.
Trump India on India due to trade from Russia There was also talk of installing penalty. However, he did not clear what this penalty would be or how much.
Till yesterday, about 10% of tariffs were used. 25% of tariffs will make goods from India, such as medicines, clothes and engineering products will become expensive.
This may reduce the demand for Indian products in the US market. India’s trade surplus with the US (profit from export) may also be reduced.
Trump said- India friend but his tariff is the highest in the world
India is our friend, but we have not done much business with him in the last several years, because their tariffs are very much, perhaps the most in the world. Also, non-economic business obstacles here are 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 killing people in Ukraine. This is not all right! Therefore, India will also have to give a penalty from 25% tariff from August 1 and the reason mentioned above (trade from Russia). Thanks for attention. Make America Great Again!
Donald Trump has been mentioning tariffs since the time of election rallies. Understand about the tariff and its effect 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 will 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.
Experts say that 25% tariff is bad news for India, but now all the attention is on fulfilling the trade agreement with America quickly. If the agreement is delayed, it may affect India’s FY26 GDP. Garima Kapoor, economist at Elara Capital, said, “If there is no agreement till September-October, we can see a shortage of 20 basis points in India’s entire year GDP growth estimate.
Kapoor said that the rate of 25% tariff is certainly negative, as countries like Vietnam, Indonesia and Philippines have less tariffs. Exempted goods such as pharma and the exact information about tariffs on different rates like iron, steel and auto, but if pharma is also tariffs, it will be more harmful to India’s exports, as more than 30% of India’s pharma exports go to the US.
- smart fone: India has become the largest country to supply smartphones to America in the second quarter of 2025, which overtook China. India’s smartphone exports have secured 44% share in the US segment. They will not be targeted right now, but 25% tariffs in future can increase their prices, which can affect the competition.
- Diamonds and Jewelery: The US exports more than $ 9 billion (about 79 thousand crores) to India from India, including diamonds, gold-silver jewelry and colored gems in the natural and lab. The new tariffs can increase their prices, which can reduce the demand for Indian jewelery and also threaten jobs.
- Electronics: The US from India has about $ 14 billion (about 1.2 lakh crore rupees) electronics products such as laptops and servers, exports. Although these products are currently on duty-free as the US section 232 investigations are going on, but if they are tariffs in future, then India’s cost can be reduced.
- Pharmaceuticals (medicines): The Indian Pharma sector is a large supplier of cheap medicines worldwide. The US imports generic medicines, vaccines and active ingredients from India, which exported more than $ 7.5 billion (about 65 thousand crores) in 2025. If a tariff is imposed on pharma, it will be a major setback for India’s exports, as the US takes more than 30% of India’s pharma exports.
- Textile and Clothes: India is exported from handmade silk to industrially made cotton clothing from India, which cost more than $ 2.5 billion (about 22 thousand crores) in 2025. 25% tariffs will increase their prices, which can affect the demand for Indian textile and this sector can weaken.
Question 3: Will also put penalty with Trump Tariff, what is this penalty?
answer: Trump has talked about imposing 25% tariffs. Along with this, he has also talked about putting penalty, but he did not make it clear what this penalty will 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. On August 25, the US team will come to India and the sixth round of talks will be held.
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, 40% tariff is imposed on Brazil. 25% tariff on Canada is active.
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 talked about 25% tariffs on Truth social and has also given a date, but Indian officials are considering it as a temporary step, as business talks are still going on. Trump has already threatened tariffs before 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.
