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Home Economy U.S. to impose 25 percent tariff on India starting August 1, says Trump

U.S. to impose 25 percent tariff on India starting August 1, says Trump

Bilateral goods trade between the two nations reached approximately $129 billion in 2024
U.S. to impose 25 percent tariff on India starting August 1, says Trump
Trump's administration plans to notify around 200 countries of their new “world tariff” rate

U.S. President Donald Trump said on Wednesday that the United States will impose a 25 percent tariff on India starting on August 1. Trump added that India will also face a penalty on that date. However, he did not elaborate on the amount or the reason behind this penalty.

“While India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the world, and they have the most strenuous and obnoxious non-monetary trade barriers of any country,” said Trump in a post on his social media platform, Truth Social.

“Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of energy, along with China,” he added.

India to resume U.S. trade talks in mid-August

On Wednesday, President Trump stated that a trade deal with India had not yet been finalized and warned of the potential for higher tariffs if no agreement is reached by the August 1 deadline.

While India is expected to resume trade talks in mid-August during a planned visit by a U.S. delegation, the goal is to finalize a comprehensive bilateral agreement by October, according to Indian officials.

Earlier this week, Trump reiterated that countries failing to secure separate trade deals with the U.S. could soon face new tariffs ranging from 15 to 20 percent on their exports—significantly higher than the 10 percent general tariff imposed in April.

The administration also plans to notify around 200 countries of their new “world tariff” rate.

Read: UAE’s non-oil foreign trade soars 24 percent to $462.8 billion in H1 2025

India open to easing trade policy

U.S. Trade Representative Jamieson Greer had emphasized that negotiations with India require more time, stressing that Trump prioritizes favorable terms over speed. Greer acknowledged that India has shown a strong willingness to open parts of its market, though its longstanding trade policy has historically centered on protecting domestic industries.

Indian officials noted that New Delhi has already proposed tariff cuts on a wide range of products and is working to reduce non-tariff barriers. Bilateral goods trade between the two nations reached approximately $129 billion in 2024, with India maintaining a trade surplus of nearly $46 billion.

Officials added that India is carefully adjusting its trade strategy amid broader U.S. tariff threats aimed at BRICS nations due to concerns over de-dollarization efforts and purchases of Russian oil.

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