Trump tariff
US President Donald Trump has announced an additional 25% tariff on imports from India on 6 August 2025. With this, the total American tariff on India has now increased to 50%. This step has been taken in response to India to buy energy and weapons from Russia. This decision may immediately affect some of India’s big export areas, while some sectors are still safe.
These sectors will have a direct impact
The new tariff will affect the Indian products which are hard-working and who are sent in large quantities to America. Such as clothes, readymade garments, jewelery, handicrafts, leather goods and seafood. These industries were already troubled by global competition and rising cost, and now Trump’s tariffs can increase their difficulties. Increased tariffs will increase the price of these products in the US market, which may reduce their demand and will suffer heavy losses to Indian exporters.
Relief for these sectors at the moment
Large sectors like pharma, smartphone and petroleum have been relieved from tariffs, as they are included in the US discount list. This includes medicines, smartphones, semiconductors such as electronic goods and energy products. In the financial year 2025, India had exported $ 10.5 billion medicines to the US and electronic items worth $ 14.6 billion, especially smartphones. Together, these two are about 29% of the total exports to the US of India. Petroleum exports are also left from Trump’s tariff. In 2025, India sent a petroleum product of $ 4.09 billion to the US. The funny thing is that Trump has objections to India’s purchasing petroleum from Russia, but still this category is still in the discount list.
Danger is not yet averted, further strictness possible
How uncertain the policies of Trump administration are, it seems that Trump has recently threatened to put up to 250% tariff on foreign medicines. Things like smartphones, which are now in the list of discounts, may change in future. Everything rests on the next steps of the US administration, and the possibility of suddenly changing the policy cannot be ignored. In an order issued on August 6, the US clearly stated that the products which have been exempted in tariffs will continue to get entry in the US market without or less tax. But how long this situation will last, it is difficult to say.
When will the tariff come into force
The first 25% tariff imposed of Trump will be applicable from August 7, while the new additional 25% tariff will be applicable from August 27. The thing to note is that earlier there was talk of a small trade deal to remove tariffs between America and India, which failed. After this, Trump took this strict step. However, now both countries are trying to ensure a bilateral trade agreement (BTA) in September-October. If this deal is done, then business stress can decrease and solve problems related to tariffs can be solved.