India Faces US Tariff Shock: 25% Hike on Exports
The United States is set to impose a hefty 25% tariff, along with an unspecified penalty, on Indian goods starting August 1. This drastic move, announced on July 31, 2025, cites India’s purchases from Russia and a perceived trade deficit as justification.
The additional tariff will layer onto existing levies, potentially crippling key Indian export sectors. Garments and telecom equipment are expected to bear the brunt of this protectionist measure.
While India boasts a trade surplus with the US in goods, the US administration contends a surplus exists when services are factored into the equation. This discrepancy forms the crux of the ongoing trade dispute.
The exact nature of the penalty remains shrouded in secrecy, adding to the uncertainty and anxiety among Indian exporters. This development necessitates a robust response from the Indian government to mitigate the potential economic fallout. The impact on employment and India’s global trade standing will be closely watched in the coming months.
