President Donald Trump announced a 25% tariff on goods imported from India, effective August 1, 2025, marking a significant escalation in trade tensions between the United States and one of its strategic partners. The tariffs are part of a broader executive order imposing reciprocal duties ranging from 10% to 41% on imports from 69 to 70 countries, aimed at addressing perceived long-standing trade imbalances. Despite the tariff announcement, the U.S. administration indicated ongoing negotiations with India to potentially reach a new trade agreement before the tariff deadline. The tariffs on Indian goods put approximately $20 billion at risk, while around $30 billion worth of imports are temporarily spared. This move comes amid concerns about the impact on India’s rapidly growing economy and its role as a counterbalance to China in the region. The tariffs imposed on India are notably higher than those applied to imports from the European Union, Japan, and South Korea.