Trump Hits India with 25% Tariff in Escalating Trade Strategy
Imports from India will now be subject to a 25% tariff, President Donald Trump announced Wednesday, marking his latest move in a widening trade war that has become central to his second-term agenda.
Posting on Truth Social, Trump criticized India’s trade policies, describing its tariffs as “far too high” and labeling other trade barriers as “strenuous and obnoxious,” though he did not offer specific examples.
In 2022, India imposed an average effective tariff of 5.2% on American goods.
While the newly announced 25% rate is slightly below the 26% Trump threatened on April 2, it still represents a significant jump from the 2.4% average tariff the U.S. has typically applied to Indian imports in recent years. India remains one of the United States’ largest trade partners, with nearly $90 billion worth of goods imported last year alone.
Key U.S. imports from India include chemicals, plastics, leather products, agricultural goods, and metals. In return, India primarily buys American oils, cement, stone, glass, and machinery. The timing of the tariff announcement is notable, coming just days before a Friday deadline set for countries to negotiate new trade terms—terms Trump emphasized Wednesday “stand strong” and “will not be extended.” He also indicated that dozens of countries could soon face a new base tariff level of up to 20%, up from the 10% rate introduced in April.
Trump’s aggressive tariff approach continues to inject uncertainty into the global economic landscape. In the past two weeks, he has unveiled new trade agreements with multiple nations, aimed at clarifying updated terms of commerce with the U.S. Critics, however, argue that these deals are plagued by vague language and impractical commitments.
Despite the growing tensions, major stock indexes have remained resilient. Some companies have noted that the actual financial impact of the new tariffs may be less severe than initially anticipated, providing a measure of reassurance to investors.
