The United States has imposed a 25% tariff on Indian exports, a move announced by President Donald Trump that singles out India for harsher trade conditions compared to its major trading peers. This tariff affects nearly $40 billion worth of exports from India, the world's fifth-largest economy, and has raised concerns about potential mass layoffs, particularly in the textiles sector. The tariff comes amid broader US import duties targeting Asia-Pacific trading partners. Despite the imposition of these tariffs, India is actively engaged in trade talks with Washington in an effort to negotiate a deal that might mitigate the impact. Indian policymakers and businesses have expressed concern over the tariff's economic implications, including the possibility of banks adopting a risk-averse stance that could slow lending to export-oriented micro, small, and medium enterprises (MSMEs). The tariff move is viewed by some as a pressure tactic by the US to push India toward signing a broader trade agreement, with agricultural trade being a key point of contention. India remains diplomatically engaged and hopeful that the White House will reconsider the tariff decision.