Trump Threatens 20-25% Tariffs on India Over Trade Imbalance
Says India Imposes Higher Duties on US; New Tariffs Could Take Effect from August 1….
US Former US President Donald Trump has sparked global attention once again by suggesting that the United States could impose tariffs ranging from 20 to 25 percent on Indian imports, citing what he calls an unfair trade imbalance. In his latest statement, Trump claimed that India continues to impose significantly higher tariffs on American goods, and that it is time the US responds in kind.
Speaking at a political event during his ongoing campaign trail, Trump said, “India has been charging the US very high tariffs on our products for years. It’s one-sided, and no one has done anything about it. But I will. From August 1, we’re going to hit back — with 20 to 25 percent tariffs on Indian goods.”
While Trump did not specify which product categories would be targeted, trade analysts believe that key sectors such as textiles, pharmaceuticals, auto parts, and electronics could be among the ones affected. The announcement has caused concern among Indian exporters and trade bodies, especially since the US is one of India’s largest trading partners.
Trump has previously criticized India’s trade policies during his presidency, calling the country a “tariff king” for imposing duties on American motorcycles, technology products, and agricultural items. Although some trade tensions were eased during his tenure, friction remained over issues like digital taxes, market access, and price controls on medical devices.
If the new tariff policy is implemented, it could significantly impact India-US trade relations, which have seen considerable growth in recent years. India exported goods worth over $78 billion to the US in the last financial year, while US exports to India stood at around $43 billion.
Indian officials have not yet issued an official response, but diplomatic sources suggest that back-channel talks may be initiated to defuse tensions. Experts warn that retaliatory tariffs or trade restrictions from India could further escalate the situation, affecting bilateral investment and cooperation.
This development also comes at a time when the global economy is dealing with inflationary pressures, supply chain disruptions, and shifting geopolitical alliances. Any major trade barrier between India and the US — two major democracies and strategic partners — could have far-reaching economic and diplomatic consequences.
The Indian business community now awaits clarity on whether the proposed tariffs will indeed be enforced from August 1 or whether diplomatic negotiations will prevent a trade rift.