Donald Trump has announced a 25% tariff on all imports from India, effective August 1, 2025. This is a sweeping measure unlike many other countries, India will not receive any sectoral exemptions—even for critical goods like pharmaceuticals, electronics, and energy products. Imports already in transit before August 7, 2025, will be subject to the previous lower rates for a limited time.
The US administration explicitly tied the tariff to unresolved trade negotiations and to India’s ongoing purchases of Russian oil and defense equipment, with Trump also threatening additional, unspecified penalties linked to India’s relationship with Russia. The intent appears to be to pressure India into accepting US terms on trade as well as aligning more closely with US geopolitical positions.
This action is expected to have a significant impact on India’s exports, potentially reducing them by up to 30% in FY2026 compared to the previous year. Sectors likely to be hit hardest include petroleum products, pharmaceuticals, electronics, textiles, engineering goods, and others. While some sources mention possible exemptions for certain sectors (such as pharmaceuticals and electronics), the most recent executive order explicitly denies India all exemptions, confirming a flat 25% tariff on all Indian exports to the US.
Indian government officials have called the move a “pressure tactic” and affirmed their intention to protect domestic farmers and small and medium businesses, especially as agricultural liberalization is a central US demand in the stalled trade talks. The announcement has also triggered negative reactions in Indian markets and heightened economic uncertainty in the context of global trade tensions.
” Trump has imposed an across-the-board 25% tariff on Indian exports with no exemptions, citing both trade and geopolitical grievances, starting August 1, 2025″ for world news click www.eminentnews.com
