Trump Imposes 25% Tariff on Indian Goods Amid Ongoing Trade Negotiations

U.S. President Donald Trump announced a 25% tariff on imports from India starting Friday, escalating trade tensions between the two nations. The move, which Trump linked to India’s high tariffs and close ties with Russia, threatens to disrupt months of ongoing negotiations aimed at finalizing a bilateral trade deal.

Trump criticized India’s “obnoxious non-monetary trade barriers” and reliance on Russian arms and energy, citing these as reasons for the punitive measure. While signaling willingness to continue talks, he hinted that a resolution could be reached by the end of the week.

The new tariff is steeper than those imposed on other U.S. trade partners, including Vietnam (20%) and the European Union (15%), potentially impacting key Indian export sectors like textiles, footwear, and furniture. Indian exports to the U.S. totaled about $87 billion in 2024, with labor-intensive industries expected to bear the brunt of the new tax.

The U.S. maintains a $45.7 billion trade deficit with India, and negotiations have repeatedly stalled over issues such as U.S. market access to Indian agricultural and dairy products. India, citing the need to protect its farmers and small businesses, said it remains committed to achieving a “fair, balanced and mutually beneficial” trade agreement.

This latest escalation comes amid broader U.S. trade actions against countries aligned with BRICS policies, as Washington seeks to counterbalance China’s influence. Analysts warn that the move could severely strain U.S.-India relations, which had been cultivated as a strategic partnership in the Indo-Pacific region.

The Indian government is reviewing the implications of the tariffs while global markets monitor the fallout on trade and geopolitical ties.