Islamabad 6 August: U.S. President Donald Trump has signed an executive order imposing an additional 25% tariff on goods imported from India, effective August 7, 2025, bringing the total tariff rate to 50% when combined with a previously announced 25% duty.
The move, announced via Truth Social, targets India’s trade practices and its continued imports of Russian oil and military equipment, which Trump claims undermine efforts to curb Russia’s actions in Ukraine.
The White House stated that the tariffs address a “national emergency” caused by persistent U.S. trade deficits, with India’s 2024 goods trade deficit reaching $45.8 billion. Exemptions apply to pharmaceuticals, energy products, and electronics, but sectors like textiles, jewelry, and agriculture face significant impacts, with tariffs on apparel reaching 37% and gems up to 38.5%. Indian exporters warn of a potential 30% drop in exports, from $86.5 billion to $60.6 billion in FY 2026.
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India’s commerce ministry responded, emphasizing its commitment to a “fair, balanced, and mutually beneficial” trade deal, while vowing to protect national interests. Industry leaders expressed concern, with the Federation of Indian Export Organisations noting that the tariffs could render Indian goods uncompetitive against rivals like Vietnam and Bangladesh. Negotiations continue, with a U.S. trade delegation expected in New Delhi later this month.
