Washington, July 30: US President Donald Trump has announced the imposition of a 25% plus tariff on Indian imports starting August 1, accusing India of maintaining excessive tariff levels and obstructive trade barriers that hinder American business interests.
In a statement posted on social media Tuesday, Trump described India as a “friend” but said the United States has done “relatively little business” with it due to the country’s protectionist trade practices.
“India has the most strenuous and obnoxious non-monetary trade barriers in the world,” Trump said, adding that “they will now be paying a 25% plus penalty.”
US Criticism of India’s Trade Policy
Trump’s announcement comes amid growing US dissatisfaction with India’s tariff structure, which Washington views as a major obstacle to fair trade. While India has attempted in recent years to boost its trade ties with the US through technology and defence deals, American administrations—both past and present—have frequently criticized New Delhi for its restrictive import regime and regulatory hurdles.
The latest move escalates the economic pressure on India just as it is trying to expand exports and attract more global investment. Sectors such as pharmaceuticals, textiles, chemicals, and electronics could be impacted depending on which product categories fall under the new penalty.
No Clarity on Product Categories Yet
The White House has yet to release detailed product lists or tariff schedules. However, sources in Washington indicate the penalties may target high-volume Indian exports, especially in categories where the US trade deficit is significant.
India Yet to Respond Officially
As of Wednesday, the Indian government had not issued an official response. Trade analysts in New Delhi say the move could spark a new round of tensions in the India-US trade relationship, which has faced multiple friction points over the past decade—from dairy and medical device imports to digital taxation and e-commerce policy.
This isn’t the first time Trump has singled out India for what he perceives as unfair trade practices. During his previous tenure, the US ended India’s preferential access under the Generalized System of Preferences (GSP) in 2019, affecting over $5 billion in Indian exports.
Strategic Relations Remain Strong
Despite the trade blow, the two countries have deepened military and strategic ties, especially in the Indo-Pacific. Washington sees India as a critical partner in counterbalancing China’s growing influence. It remains to be seen whether the tariff hike will spill over into broader diplomatic areas or stay confined to trade.
With the August 1 deadline approaching, Indian exporters are bracing for a possible disruption, and international observers will be watching closely to see whether New Delhi retaliates or attempts a negotiated settlement.