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Trump Slaps 25% Tariff on Indian Imports Amid Rising Tensions
US President Donald Trump and Indian Prime Minister Narendra Modi shake hands, at the White House, February 13, 2025
In a move that could reshape U.S.-India trade relations, President Donald Trump announced a 25% tariff on all goods imported from India, effective August 1, 2025. The decision, shared via his Truth Social account, also includes an unspecified penalty targeting India’s continued defense and energy ties with Russia.
Trump cited India’s “high tariffs” and “obnoxious non-monetary trade barriers” as justification for the action, expressing frustration over stalled negotiations for a bilateral trade agreement. Despite five rounds of talks, the two nations failed to reach a deal before the August deadline.
India, which exports nearly $86.5 billion worth of goods to the U.S. annually, now faces significant headwinds. Key sectors like chemicals, machinery, and electronics—once booming—may see sharp declines due to the new tariff regime.
Indian officials have expressed disappointment but remain committed to resolving the dispute diplomatically. The next round of trade talks is scheduled for late August in New Delhi.
This escalation comes at a time when India is strengthening global trade ties, including a recent agreement with the UK. However, the U.S. remains India’s largest export market, making this tariff a potentially disruptive force in the region’s economic landscape.
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