President Donald Trump has issued an executive order imposing a 25% tariff on Indian exports to the US, part of a broader list of duties targeting nearly 70 countries. The order, titled "Further Modifying The Reciprocal Tariff Rates," sets new levies effective August 7, 2025.

India faces a 25% "Reciprocal Tariff, Adjusted," as announced in the executive order, which follows Trump’s earlier Truth Social post hinting at additional penalties for India’s purchases of Russian military equipment and energy. While the order omits details on this penalty, Trump previously cited India’s high tariffs, non-monetary trade barriers, and ties with Russia as reasons for the tariff.

The Federation of Indian Export Organizations noted that goods in transit or loaded for US shipment by August 7, and those cleared for consumption by October 5, are exempt, offering temporary relief to exporters. Wendy Cutler, Senior Vice President at the Asia Society Policy Institute, warned that the tariff jeopardizes hopes for a US-India bilateral trade agreement and poses implementation challenges for US customs officials.

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Trump’s order also highlights trade imbalances, stating that some nations have failed to align sufficiently with US economic and security interests. Tariffs range from 10% for the UK to 40% for Laos and Myanmar, with Japan at 15%, Pakistan at 19%, and Sri Lanka at 20%.

In a sharp critique, Trump called India’s tariffs among the world’s highest and criticized its BRICS membership as anti-US, accusing the group of attacking the dollar. He also dismissed India-Russia ties, stating, “They can take their dead economies down together.” India’s government responded by pledging to safeguard its national interests while assessing the tariffs’ impact.

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