US Imposes 25% Import Duty on Indian Goods
31-Jul-2025 02:11 PM
New Delhi. Contrary to expectations, US President Donald Trump has announced to impose 25 percent import duty on Indian goods/products from August 1, 2025 (Friday).
Apart from this, if India continues to buy defense and energy sources from Russia, then America will also impose an additional penalty on India, which has not been determined yet.
Trump's announcement can have a profound impact on the export shipment of Indian products in the American markets.
It is worth noting that America is India's largest trading partner. About 20 percent of the total annual export of commercial goods from India is shipped to America alone.
It is understood that America's displeasure with India is also due to the fact that India is an active member of the 'BRICS' organization which is taking measures to end the dominance of the dollar on global trade.
The BRICS organization includes countries like Brazil, Russia, India, China and South Africa. High tariffs have also been announced in America on these countries.
The interesting fact is that five rounds of talks have been held between India and the US for the bilateral trade agreement and a US delegation is coming to India on August 25 for the sixth round of talks.
But in the meantime, the announcement of imposing tariff on India was made. Now the matter of interim agreement for bilateral trade agreement may also be in jeopardy.
Although Trump has called the Indian Prime Minister his friend, his stance on the issue of trade seems different. The two leaders met in February in which it was decided to finalize the bilateral trade agreement by September-October 2025.
India was hoping that the initial announcement of imposing a tariff of 26 percent on Indian goods by the US in April would not need to be implemented. But now the tariff that is going to be implemented from August 1 is slightly less than the initial level (26 percent).
Trump has said that the tariff rate in India is very high and hence the US is not getting much success in exporting its products there.