President Trump has announced a 25% tariff on most Indian goods entering the U.S., starting August 1, 2025. This is higher than the 10% baseline tariff that was in place previously. There was discussion of rates from 10% up to 25–26%, but as of the latest update, the higher rate will take effect.
India’s Calculated Response New Delhi hasn’t rushed into a deal for several reasons:
- Consumer-Led Economy: Unlike export-heavy Asian peers, India’s domestic demand gives it leverage.
2. Diversified Trade: Only 18% of India’s exports go to the U.S., reducing dependency.
3. Services Shielded: Major firms like Infosys and TCS are largely unaffected, as services aren’t targeted.
4. Farmer Protection: India resists U.S. pressure to open its agricultural market, safeguarding local livelihoods.
Strategic Calculus India is playing the long game, securing deals with other nations (like the U.K.) to strengthen its hand. Analysts say the U.S. won’t want to alienate India, a key partner in the Indo-Pacific and a strategic hedge against China.
(source USA Today)
—Agencies
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