US Announces New Tariffs on Indian Goods

US President Donald Trump has announced a significant increase in import tariffs on Indian goods, introducing a 25% additional duty alongside an unspecified penalty. This decision, effective from August 1, is a response to India's high tariffs and its purchases of Russian crude oil and military hardware.

Why the US is Imposing These Tariffs

The US cites its growing trade deficit with India and accuses India of limiting US market access. India's continued engagement with Russia for oil and weapons has also been a point of contention for the White House.

Key Sectors Affected by the Tariffs

India's major exports to the US, including pharmaceuticals, telecommunications equipment, and precious stones, will face increased tariffs. This move could significantly impact labor-intensive sectors such as textiles, leather, and handicrafts, potentially eroding India's competitive edge in these markets.

What Happens Next?

India is evaluating the impact of these tariffs and may seek resolutions through the World Trade Organization or bilateral discussions. Exporters are considering diversifying to other markets like the European Union and Southeast Asia to mitigate the effects.