Trump's 25% tariff threat on Indian goods deepens trade rift

Trump’s tariff threat on Indian goods raises geopolitical tensions, disrupts trade talks, and unsettles exporters ahead of crucial bilateral negotiations.

A 3D-printed miniature model of U.S. President Donald Trump, the Indian flag and the word "Tariffs" are seen in this illustration taken July 23, 2025. / REUTERS/Dado Ruvic/Illustration

U.S. President Donald Trump's 25 percent tariff threat on a wide range of Indian exports effective August 1, 2025, have escalated trade tensions and sparked concern in New Delhi over the future of bilateral economic ties.

The announcement, delivered via a combative post on Trump’s Truth Social account, includes an unspecified “penalty” clause and accuses India of “obnoxious” trade practices and close ties with Russia. The Indian Ministry of Commerce responded with a cautious statement, saying it had “taken note” of the U.S. President’s remarks and was “studying its implications.”

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