U.S. President Donald Trump has announced a 25% tariff on goods imported from India. This move comes after trade talks between India and the United States failed to reach an agreement. Trump stated that India imposes high tariffs on American goods, and this “reciprocal tariff” is being implemented in response. The new tariff will take effect from August 1, 2025. Talks may resume in the second week of August.
The decision is expected to significantly impact Indian exporters, particularly in the automobile, pharmaceutical and gems and jewelry sectors. The Indian government has begun reviewing the move and expressed its intent to accelerate trade negotiations. Experts believe the tariff could put pressure on India’s economy and the value of the rupee.Trump Had Previously Hinted at This Move
Earlier, President Donald Trump had warned that if a trade agreement was not finalized with India this week, the country could face import duties of up to 25%. When asked by reporters on Tuesday whether higher tariffs would be imposed if the deal didn’t go through, Trump responded, “Yes, I think so.”
According to media sources.
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