U.S. President Donald Trump has announced a 25% tariff on Indian imports plus Penalty for buying oil and weapons from Russia, effective August 1, 2025 — a sharp increase from the previous 10–15% rates. The decision comes amid ongoing trade negotiations and reflects Washington’s concerns over India’s continued purchases of Russian energy and defense equipment, which U.S. officials say weaken Western sanctions on Russia.
What India Buys and Sell from the US:
Key industries affected:
- Automobiles & Auto Parts: Major exporters like Tata Motors and Bharat Forge may face reduced demand.
- Steel & Aluminium: Already under pressure from earlier tariffs; now facing renewed headwinds.
- Electronics & Smartphones: iPhone assembly partners and solar module exporters may need to recalibrate.
- Textiles & Apparel: Mixed impact—some segments may benefit if Chinese competition is hit harder.
- Marine Products & Processed Foods: Facing 25–27% tariffs, reducing competitiveness.
- Gems & Jewellery: $9B+ annual exports now under pressure.
- Pharmaceuticals: Largely spared for now, especially generics.