Aug 4, 10:31 AM

U.S. Slaps 25% Tariff on Indian Goods Starting Aug. 7

The United States will levy a 25% tariff on a broad range of Indian exports beginning 7 August after bilateral trade negotiations broke down, according to multiple briefings on the decision. Washington is also weighing an additional surcharge that could be linked to New Delhi’s purchases of discounted Russian oil, senior U.S. officials said. India’s government and industry groups are scrambling to assess the impact. Exporters have urged New Delhi to absorb part of the cost and fast-track the long-delayed ₹2,250 crore Export Promotion Mission to cushion small and medium-sized firms. Prime Minister Narendra Modi, seeking to shore up domestic support, called on citizens to buy locally made products to offset the expected hit to overseas demand. Wall Street is already marking down India’s outlook. Goldman Sachs said it has trimmed its 2025 growth forecast for the world’s fifth-largest economy, citing weaker external demand under the new U.S. tariff regime. Economists warn that higher duties could widen India’s trade deficit with the United States and complicate broader strategic ties at a time when a top aide to former President Donald Trump has publicly accused New Delhi of indirectly financing Russia’s war effort through energy purchases.