Trump to impose 25% tariff on India from August 1

U.S. President Donald Trump has announced that the United States will impose a 25% tariff on all goods imported from India starting August 1, 2025.

Trump said the reason for this move is that India has very high tariffs and strict trade barriers, which make it difficult for American companies to do business there. He shared this message on his social media platform, Truth Social.

“India is our friend, but they have some of the highest tariffs in the world and tough trade rules,” Trump said.

India’s exports to the U.S. reached $79.44 billion in 2024-25, and this new tariff is expected to increase the cost of Indian goods in the American market.

Additional Penalty and Criticism

Trump also said that India will face an additional penalty on August 1, but he did not explain what it would be or how much it would cost. He criticized India for buying most of its military weapons and energy from Russia, even during the war in Ukraine.

“India buys energy and weapons from Russia at a time when we want Russia to stop the war,” Trump added.

India’s commerce ministry has not responded to the announcement yet.

Impact on Trade and Modi’s Vision

This decision is seen as a major setback for Indian Prime Minister Narendra Modi, who has been promoting the idea of a “Shining India” and turning India into a global manufacturing and export hub.

Just recently, it was reported that India had overtaken China as the top smartphone exporter to the U.S., accounting for 44% of smartphone imports in the second quarter — up from 13% last year. Total smartphone exports from India have jumped 240%.

India also exports pharmaceuticals, diamonds, steel, and petroleum products to the U.S., which will also be affected by the 25% tariff. The move could hurt both Indian exporters and U.S. consumers, who are already dealing with a cost of living crisis.

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