US President Donald Trump has announced a 25% tariff on goods imported from India. This step has been taken after India and the US failed to reach an agreement on a trade deal.
Trump said that India imposes high tariffs on American goods, in response to which this “reciprocal tariff” has been imposed. This tariff will be effective from August 1, 2025. Now the talks on this can resume after the second week of August.
This could have a profound impact on Indian exporters, especially in the automobile, pharmaceutical, and gem and jewelry sectors. The Indian government has begun studying the decision and has talked about accelerating trade talks. Experts believe that this tariff could put pressure on India’s economy and the value of the rupee.
Trump had already indicated
Earlier, Donald Trump had said that India could face import duties (tariffs) of up to 25% if the India-US trade deal is not finalized this week. On Tuesday, when reporters asked him whether India would have to pay higher tariffs if there is no deal, Trump replied, “Yes, I think so.”
The US had given India and some other countries a deadline of August 1. It was said that either they should reach a trade agreement by this date or they would have to face increased tariffs.
The conversation had been going on for a long time.
For the past few months, Indian and American officials have been negotiating this trade deal, but at times they have appeared optimistic and at other times on alert mode. It was not clear when the agreement would be reached and what it would entail.
When asked what he expects from India in a potential deal, Trump said, “We’ll see what happens. India has been a good friend, but India has put up more tariffs than almost every other country so far.” He added, “But now I’m in charge, and it can’t go forward.”
