US Announces New Tariffs on Indian Goods

US President Donald Trump has announced a significant 25% tariff on all goods imported from India, effective from August 1. This move comes after failed negotiations for an interim trade deal between the two nations, causing concern among Indian exporters.

Penalty Linked to Russian Oil and Arms Purchases

Trump highlighted India's high trade surplus with the US and its purchases of Russian oil and military equipment as reasons for the additional penalty. "India will therefore be paying 25%, plus a penalty for the above, starting Aug 1," Trump stated on Truth Social.

Impact on Indian Businesses

The announcement has introduced uncertainty for Indian businesses, with fears that buyers may hesitate to place orders, potentially diverting trade to countries with lower tariffs like Vietnam.

Trade Negotiations Continue

Despite the imposition of tariffs, talks for a trade deal are expected to continue, with the US aiming to pressure India into meeting its demands for market access and concessions on farm and dairy products.