Trump to impose steep tariffs on key Indian sectors like textiles, steel, and IT services starting August 1.
Smartphones, laptops, and pharmaceuticals are spared, allowing continued growth in India’s top export segments.
Trump criticizes India’s trade barriers and hints at penalties over Russian energy deals, straining US-India relations.
US President Donald Trump on July 30 announced that the United States will impose a 25% tariff on Indian imports starting August 1. However, smartphones and a few other sectors remain exempt. He said that India’s tariffs on American goods are very high. He also called India’s trade barriers the most strenuous and obnoxious non-monetary among all countries. The announcement was made via Truth Social, the social media platform owned by Trump.
SurveyIn addition to the new tariffs, Trump also hinted at an unspecified “penalty” for India’s ongoing purchases of Russian weapons and energy, signalling growing tensions between Washington and New Delhi.
The upcoming tariff measures are expected to affect several major Indian sectors, including textiles, automobile components, steel and aluminium, solar equipment, IT services, and parts of the pharmaceutical industry. However, laptops, smartphones and pharmaceuticals have been exempted from the tariff hike, at least for now.
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Notably, India exported $14.6 billion worth of smartphones and $10.5 billion in pharmaceuticals to the US in FY2025. These segments are not subject to the 25% tariff or the 10% baseline duties introduced in April, allowing for continued growth. According to reports, Indian exporters have front-loaded shipments of exempted goods in anticipation of the new duty, resulting in a 17-18% hike in exports in early 2025 to over 20% by June. While the exemptions provide temporary relief, the smaller and mid-sized exporters reliant on the US market will be affected by these high tariff rates.
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The new tariffs are slated to take effect Friday, August 1, unless trade talks between the two countries lead to a last-minute resolution.
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Himani Jha
Himani Jha is a tech news writer at Digit. Passionate about smartphones and consumer technology, she has contributed to leading publications such as Times Network, Gadgets 360, and Hindustan Times Tech for the past five years. When not immersed in gadgets, she enjoys exploring the vibrant culinary scene, discovering new cafes and restaurants, and indulging in her love for fine literature and timeless music. View Full Profile
