Trump Doubles Tariffs On Indian Imports, Escalating Trade Tensions

Trump Doubles Tariffs on Indian Goods, Citing Trade Imbalance and Russian Oil Imports

Washington, D.C., August 6, 2025 — U.S. President Donald Trump has announced a sharp increase in tariffs on Indian imports, doubling existing duties on a range of goods. The decision comes amid growing trade tensions between the two countries, with Trump accusing India of maintaining unfair trade practices and continuing to buy discounted oil from Russia despite international pressure.

During an interview on CNBC’s Squawk Box, Trump criticized India’s long-standing tariff policies, claiming they have created an unbalanced trade relationship. “India has the highest tariffs of any country. We do very little business with them because their tariffs are so high,” he said. “That’s going to change—very substantially.”

The new tariffs are expected to impact a wide range of Indian exports including steel, aluminum, pharmaceuticals, textiles, and automotive parts. These sectors are among the most vital for India’s export economy, and the United States remains one of its largest trading partners. Industry experts warn that the increase could lead to a significant drop in demand for Indian goods in the American market, potentially resulting in job losses and a slowdown in export revenue.

Trump’s remarks also targeted India’s continued purchase of Russian crude oil, a move he said undermines Western efforts to isolate Moscow following its invasion of Ukraine. India has defended its energy imports as essential for national interests, but the U.S. sees them as a challenge to its global sanctions strategy.

While the Indian government has not issued an official response, officials within the Ministry of Commerce and Industry are reportedly evaluating the economic impact of the move and exploring possible diplomatic responses. Analysts suggest India could impose retaliatory tariffs if the situation escalates.

The announcement has caused concern among Indian exporters and trade associations. Many fear that U.S. buyers may shift to alternative markets due to increased costs. Exporters from the textile and pharmaceutical sectors have expressed particular anxiety, given their heavy reliance on American demand.

In the United States, the tariff decision has sparked a mixed political reaction. Some Republican lawmakers have expressed support, arguing that the move protects American jobs and addresses a persistent trade deficit with India. Others have voiced caution, warning that the decision could harm the strategic partnership between the world’s two largest democracies, especially at a time when both nations are seeking to strengthen ties to counter China’s influence in the Indo-Pacific region.

This is not the first time Trump has taken a hard stance on India’s trade policies. In 2019, during his presidency, he revoked India’s preferential trade benefits under the Generalized System of Preferences (GSP), a decision that affected billions of dollars in Indian exports. India responded at the time with retaliatory tariffs on U.S. goods including almonds and apples.

Trump’s latest decision to double tariffs signals a renewed phase of trade tensions between the two countries. As the situation unfolds, global markets and diplomatic observers will be watching closely to see whether economic negotiations can ease the strain or if further escalation is on the horizon.

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