Trump's Tariff Tsunami: India Faces 25% US Duty
President Trump's executive order enacts a flat 25% tariff on all Indian goods. The sweeping measure, effective till a bilateral pact is reached, marks a significant US trade action. Without exemptions, sectors like petroleum and electronics face severe impact. US offers exemptions only for partners with trade agreements.
- Country:
- India
In a bold move, President Donald Trump has signed an executive order enacting a 25% tariff on all imports from India, as reported by the Global Trade Research Initiative (GTRI). This broad measure comes without product-level exemptions and will remain in place until a bilateral deal is struck between the two nations.
The executive order, dated July 31, states that certain foreign trading partners engaged in significant trade and security talks with the U.S. will face these added duties until agreements are finalized and memorialized by further executive orders. GTRI indicates this tariff imposition represents one of the most stringent trade actions the U.S. has taken against a major trading partner recently.
According to GTRI, beginning August 7, 2025, Indian goods will encounter this additional 25% tariff, which compounds on existing most-favored-nation (MFN) tariffs. Without exceptions, key sectors such as pharmaceuticals, electronics, and petroleum will be hit hard, affecting $24.8 billion worth of exports to the U.S. in FY2025.
(With inputs from agencies.)
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