US President Donald Trump has imposed an additional 25 per cent tariff on India. This tariff has been imposed as a fine for continuing to buy oil from Russia. The total tariff on Indian goods will be 50 percent, except for some discounts after additional tariffs. Trump signed an executive order to impose additional tariffs less than 14 hours before his initial tariff was implemented. On July 30, Trump announced a 25 % tariff on Indian goods, which will be effective from 7 August i.e. today. At the same time, the additional tariff will be effective after 21 days i.e. from August 27. Trump has rejected several times in the past that India buys oil from Russia and by doing so he is helping Russian President Vladimir Putin to incite the Ukraine war. A day earlier, he had talked about putting a lot of tariffs on India within 24 hours.
India’s competitors will get an increase in the US market due to low fees
America’s tariff to 50 per cent is expected to cause dual beating on India. Having more tariffs may have the worst effect on areas such as India’s textile, sea products and leather exports. In addition, low charges on regional competitive countries such as Myanmar, Cambodia and Bangladesh have also posed a threat to lagging behind Indian products in the US market.
How much tariff is on which countries
After additional tariffs, India will become the world’s most American tariff country with Brazil. The US has imposed 40 per cent on Myanmar, 36-36 per cent on Thailand and Cambodia, 35 per cent on Bangladesh, 32 per cent on Indonesia, 30-30 per cent on China and Sri Lanka, 25 on Malaysia and 20-20 per cent on Philippines and Vietnam. These countries have business in many areas with the US, which is directly related to India. Now that these countries and India will have more tariffs, these competitive countries of India will naturally gain in the US market. However, an expectation of tariff cuts seems to be in a state of bilateral trade agreement between India and the US, for which the US negotiators are coming to India on 25 August.
These areas will affect
The areas that will suffer the most brunt on the increased tariffs of America include textiles/costumes (10.3 billion Oils), gems and jewelery ($ 12 billion), shrimp ($ 2.24 billion), leather and shoes ($ 1.18 billion), animal products, chemicals ($ 2.34 billion) and electrical and mechanical machinery ($ 9 billion). According to exporters, this step will have a serious impact on India’s export of $ 86 billion to the US.
Exemption of these items from high tariffs
However, the US has excluded some objects from high tariffs. These include pharmaceuticals, energy products such as crude oil, sophisticated fuel, natural gas, coal and power, important minerals and electronics such as computers, tablets, smartphones, solid-state drives, flat panel displays and integrated circuits.
55 percent US exports will be affected
Ajay Sahai, Director General of the Indian Export Organization Federation (Fio), has shocked the US move to increase the tariff. He said that this would affect India’s 55 percent exports to America. In 2024–25, bilateral trade between India and the US was $ 131.8 billion. In this, India exported items worth $ 86.5 billion and imported goods worth $ 45.3 billion.
Export reduced by 50 percent
Think Tank Global Trade Research Initiative (GTRI) said that tariffs are expected to make Indian goods expensive in the US. This is expected to reduce the exports to the US by 40-50 percent. Yogesh Gupta, a Kolkata -based sea food exporter and MD Moda Moda Moda, said that India’s shrimp will now become expensive in the US market. He said, we are already facing heavy competition from Ecuador as there is only 15 percent tariff. Indian shrimp already features 2.49 percent anti-dumping duty and 5.77 percent counterwelling duty. After this 25 percent, the fee will be 33.26 percent from August 7.
Blow for textile industry
The Indian Textile Industry Confederation (CITI) has described the announcement of additional tariffs as a major setback for the Indian textile industry. This will lead to competition and strong in the US for the industry. The Confederation said it was extremely concerned about the potential adverse effects of the 50 percent of the US tariff rate. America is India’s largest market for textile and apparel exports. Managing Director of Cama Jewelery Colin Shah said that this step is a serious setback for Indian exports. This will directly affect about 55 percent exports to the US.
Keep the option open for talks
As part of putting pressure on India, Trump has announced to impose an additional 25 percent tariff, but the option for talks has also been kept open. As per the executive order, the additional tariff will be effective from August 27, while the US team is coming to India on 25 August to negotiate bilateral trade agreement. Trump had kept the options open even after the announcement of the initial tariff. Initially the initial tariff was to be implemented on 1 August, which was extended to 7 August.
50 percent tariff improper step: India
India has described the US as an inappropriate step by imposing a total tariff. The Ministry of External Affairs said that India’s energy imports are based on market factors. Its purpose is to ensure energy security for the country. 50 percent of tariffs on Indian goods are inappropriate, unjust and indiscriminate. India will take all necessary steps to protect its national interests.