Former U.S. President Donald Trump has announced a 25 percent tariff on Indian imports, set to take effect from August 1. The decision follows what he described as India’s ongoing trade with Russia, including energy and arms deals, which the U.S. sees as indirect support for Moscow.
You Pay the Price, Says Trump
While calling India a “friend,” Trump criticised what he described as unfair trade practices and warned of added penalty rates on top of the 25 percent duty. Talks of a broader trade deal have collapsed, and Trump earlier tariff pause offered in good faith has now been revoked. This is the second time in four months that attackers have targeted India. In April, Trump threatened a 26 percent tariff during his Liberation Day speech but held back, hoping to reach a mutual understanding.
Russia Link Sparks Economic Blowback
The real trigger lies in India’s growing oil and defence ties with Russia. Washington believes that continued imports are undermining global sanctions. Trump team has now decided to penalise trade partners seen as indirectly supporting the Kremlin war in Ukraine.
Analysts expect the move to hit key Indian sectors like pharmaceuticals, textiles, and auto parts. Early signs already show impact Gift Nifty dropped by 174 points as the announcement went public.
How Much Could India Lose?
According to early estimates, India could face losses exceeding seven billion dollars a year. About 87 percent of exports to the U.S. now fall within the tariff reach. The new regime could erode India’s price edge in several markets.
What this really means is that economic policy is now closely tied to geopolitical choices. India’s alignment with Russia has come at a cost. With no sign of compromise yet, trade tensions with the U.S. are set to grow and Indian exporters will be the first to feel the heat.
