Trump's tariff attack on India and it's effect 1 Aug

Trump’s tariff attack on ‘friend’

Trump imposed 25 percent tariff on India

Said, penalty will also have to be paid from August 1

New Delhi : A day earlier, US

President Donald Trump had talked about imposing 20-25 percent duty on Indian imports and on Wednesday he also announced to implement it. President Trump has announced to impose 25 percent tariff and penalty on Indian imports from August 1. In the announcement made on the internet media platform ‘Tooth Social’, Trump has also accused India of high rates of duty imposed on American products and purchase of defense equipment and fuel from Russia. His announcement is not unexpected, but it has been made at a time when talks are going on between the governments of both the countries on the duty structure. Such a unilateral announcement underlines the tense situation between India and America regarding business issues. At the same time, it is also indicating that India is not at all ready to come under the pressure of America, which Trump has mentioned on many occasions.

Let us tell you, talks have been going on between the officials of both the countries for the last three months, but India is not ready to bow down to the US pressure to open the agricultural sector. There has been no official statement from the Indian government on this announcement of President Trump and at present it is being extensively reviewed. But, the picture that is coming out indicates that 25 percent duty and

Also commented on the purchase of fuel and weapons from Russia, said – all this is not right

Indian government is doing a comprehensive review of the unilateral statement of the US President

But we have done relatively less trade with it in the last several years, because it imposes very high duty. India is one of the countries imposing the highest duty in the world. Along with this, India also creates the most difficult and objectionable non-monetary trade barriers compared to any country. India always buys most of its military equipment from Russia. It is also the biggest buyer of Russian fuel along with China. At a time when everyone wants Russia to stop killings in Ukraine, all these things are not good. Therefore, India will have to pay a tariff of 25 percent from August 1. Apart from this, it will also have to pay a financial penalty. Donald Trump

66 India may be our friend, but

Trump is hurt by the trade deficit of $ 44 billion

US President Donald Trump has announced a 25 percent tariff and penalty on products coming from India. These tariffs will be implemented from August 1, i.e. Friday. Let us know which products India exports to America and what is America’s deficit in trade with India.

Trade with india

India’s total exports to the US, $85.5 billion

Bilateral trade between India and the US

Major exports from India to the US (in billion dollars)

Share in total exports (in percentage)

Stones, metals and pearls

12.2

14.3

Electric machinery and electronics

Pharmaceutical products

10.8

12.6

Machinery, mechanical appliances, parts

6.6

7.7

Mineral fuel, mineral oil

5.2

6.1

Organic chemicals

3.6

4.2

Iron/steel

2.9

3.4

Cars, tractors, trucks, their parts

2.7

3.2

US trade deficit. $44.1 billion

The figures are for 2023

India’s total imports from the US, $41.4 billion

Penalties are not good for Indian business interests. Last week, President Trump approved imposing 20 percent duty on Vietnam and 19 percent duty on Indonesia, two of India’s strongest business competitors. China is currently taxed at 30 percent. These countries already outweigh India in terms of business costs.

The US is India’s important strategic partner as well as its largest trading partner. The bilateral trade between the two countries was $132 billion in 2024. India exported $41 billion more to the US than it imported. President Trump is also putting pressure to bridge this trade deficit. Trump

also indicated that if the trade agreement with India is not finalized by August 1, additional penalties can be imposed along with tariffs. It is not clear what this additional penalty will be.

Trump’s tariff announcement will shock Indian exports

India has higher tariffs than countries like European Union, Vietnam, Japan and Britain, now eyeing BTA with America

New Delhi: Contrary to India’s expectations, the US President on Wednesday announced a 25 percent tariff. Looking at Trump’s previous attitude, the possibility of the 25 percent tariff being maintained seems low, but if this tariff continues, it will definitely be a shock for Indian product manufacturers. India does a commodity trade of $440 billion annually and out of this, $10 billion is exported to the US market alone. 22 percent of the exports of employment-oriented sectors like textiles, letters, footwear, gems and jewellery, electronics, engineering goods are to the US. Now, after the imposition of 25 percent tariff, Indian goods will become more expensive in the US market than the goods of countries like Vietnam, Indonesia, European Union, Japan, and their sales will be affected. Because the US has imposed less tariffs on these countries than on India.

America has currently imposed a 30 percent duty on China, according to this the difference in duty between China and India will be reduced considerably. China produces on a very large scale, so China’s cost is less than India. In such a situation, India will not be able to compete with China in the US market. Less tax has been imposed on India than Bangladesh, but India competes with Bangladesh only in textiles and footwear. Trump has imposed 15-15 percent duty on European Union and Japan, 19 percent on Indonesia, 20 percent on Vietnam and 35 percent on Bangladesh.

TARIFF

Currently there is only 10 percent duty

On April 2, America had announced to impose a reciprocal duty of 26 percent on India, which was postponed for 90 days on April 8, then it was postponed for a period till August 1. Then only 10 percent duty was imposed on India, which is currently continuing. In such a situation, the orders for items like garments, leather goods, electronics goods, gems and jewellery, pharma that China used to get were shifting towards India. From April to June, India’s exports to America increased by more than 20 percent compared to the same period last year. Now it will be affected. Vietnam also competes with India in the export of electronics goods.

pic.twitter.com/KEDKrYMe8U
— Rapid Response 47 (@RapidResponse47) July 30, 2025

Source Rapid Responce

22 percent of the export of employment-oriented sectors like textiles, leather, footwear, gems and jewellery, electronics, engineering goods happens in America

India imports 440 billion items annually

90% of the US market alone is worth billions of dollars

India has a lot of expectations from the bilateral agreement

It is believed that the first phase of the BTA will be completed in September and then the duty on many items is expected to end or be reduced significantly. US negotiators are coming to India on August 25 for talks on the BTA. FIEO President Ajay Sahai says that after the BTA, this duty will have no meaning and duty on many items will be reduced.

Companies like Apple will be affected

Companies like Apple will be affected by the 25 percent duty, because these days Apple is exporting the most smartphones from India to the US. After the imposition of higher duty on China, this export has increased rapidly. Now companies like Apple will reconsider expanding production in India.

TRADE

Expectation of change in duty

Trump recently announced to impose 30 percent duty on the European Union and Japan, but after both the countries expressed objection to this duty, talks were held again and the duty was reduced to 15 percent. The same was done with Vietnam and Indonesia. Therefore, it is expected that some solution will be found on the initiative of the Indian leadership.

What will be the next step of the government

The government said – no compromise with farmers, MSMEs and national interest

The Commerce Ministry, while reacting to the decision of the Commerce Ministry, has said that India cannot compromise with farmers, MSMEs, entrepreneurs and national interest and India stands by its stand. The ministry said that talks are going on with the US on BTA and India would like to have a balanced trade agreement with the US. We are committed to achieving this objective.

The US market is very important for India, which India would not want to lose under any circumstances. According to sources, the government will try its best to reduce the 25 percent duty or India would like to be assured by the US that the US will be ready to give relief in duty on Indian goods under the BTA. If the BTA happens in September, then Indian exports will be affected only for one month and till then Indian exporters can put their export orders on hold.