India to face 25pc Trump tariffs from August 1

WASHINGTON: US President Donald Trump said on Wednesday that United States will impose a 25 per cent tariff on goods imported from India starting on Aug 1, besides an additional penalty for its imports from Russia.

While announcing his decision, Trump cited “far too high” Indian tariffs and “obnoxious non-monetary Trade Barriers as the reason.

It is estimated that India’s exports to the US stood at $79.44 billion in 2024-25. 

“While India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,” Trump wrote in a post on Truth Social.

Read more: No more the best friend: India targets Trump after May 10 debacle

INDIA IS STUDYING

In its reaction, the Indian government said in a statement it had taken note of the US bilateral trade tariff decision and added that New Delhi was studying its implications.

TARIFFS PLUS PENALTY

Meanwhile, the US president said India will also face a penalty on Aug 1 for its purchases of Russian weapons and energy, but he did not elaborate on the amount.

“They have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD!”

India’s commerce ministry, which is leading the trade negotiations with the U.S., did not immediately respond to a request for the comment.

Trump reached a trade deal with the power European Union on his own terms.

Read more: Trump says US-EU trade deal done, 15pc tariff on EU exports

That’s why German Chancellor Friedrich Merz said his country, which Europe’s biggest economy, will face “substantial damage” from the US tariffs agreed as part of a trade deal between Brussels and Washington.

MASSIVE BLOW TO MODI

Trump decision to go ahead with tariff diplomacy in the case of India too is big blow to Indian Prime Minister Narendra Modi who has been talking about “Shinning India”.

It means his desire to make India a manufacturing hub and export centre is also in danger.

A day earlier, it was reported that India has overtaken China to become the top exporter of smartphones to the US, which reflected the shift in manufacturing supply chain away from Beijing amid tariff-fueled uncertainty.

A research firm Canalys, which shared the figures, said smartphones assembled in India accounted for 44 per cent of US imports of those devices in the second quarter, which was 13 per cent in the same period last year.

Meanwhile, total volume of smartphones made in India soared 240 per cent.

However, the Indian exports to the US also includes sectors like pharmaceuticals, diamonds, iron and steel, petroleum products.

But the 25 per cent tariffs imposed by Trump make every Indian export more expensive amid the cost of living crisis faced by the US consumers.