The United States has issued a formal notification to impose an additional 25% tariff on goods imported from India. This new tariff will take effect on August 27, 2025, at 12:01 AM (EST), barely 30 hours from now. The US claims this move is in response to India purchasing oil from Russia.
The Trump administration argues that by buying oil from Russia, India indirectly funds Moscow in the Ukraine conflict. This additional 25% tariff will be on top of the reciprocal 25% tariff effective from August 1, 2025, raising the total tariff on many Indian imports to 50%. This rate is on par with Brazil's and significantly higher compared to other Asia-Pacific countries.
However, areas such as pharmaceuticals, semiconductors, and energy resources have been exempted from this tariff. This tariff could have significant repercussions on the $87 billion US exports from India, accounting for 2.5% of the country's GDP. Industries like textiles, gems and jewelry, leather, marine products, chemicals, and auto parts might be the hardest hit.
Source: aajtak
India's Reaction to the US Tariff
India's Ministry of External Affairs labeled the 50% US tariff as unjust and unreasonable. The Ministry emphasized that India imports oil from Russia based on its energy needs and national interests, which the US previously encouraged for global energy market stability. Instead of immediate retaliatory tariffs, the Indian government is considering diplomatic negotiations and incentives for exporters.
Prime Minister Narendra Modi reaffirmed his stance on Monday, promising that his administration would navigate through these challenges irrespective of Washington's economic pressures. Speaking to a public meeting in Ahmedabad, he declared, 'No matter the pressure, we'll continue to build our resilience. The Self-Reliant India initiative is gaining great momentum from Gujarat, a result of two decades of hard work.'
He assured the nation that India would stand resolutely against such pressures, prioritizing the interests of its citizens. PM Modi stated, 'Today, we are witnessing policies in the world driven by economic self-interest. From Gandhi's land, I promise you, Modi holds your welfare at the forefront. My government will never allow any harm to small entrepreneurs, dairy farmers, or cultivators. I stand as a barrier against any detrimental policies affecting India's farmers, fishermen, and livestock keepers. We will never accept any form of compromise against their interests.'
