US Plans 25% Tariffs on Indian Imports Amid Trade Negotiations

US President Donald Trump has threatened to impose tariffs of up to 25% on Indian imports if a trade agreement is not reached by the August 1 deadline, citing India's high tariffs on US goods. Indian exporters are experiencing uncertainty and delayed orders as they await clarity on the tariff situation, with sectors like gems, jewelry, apparel, and chemicals particularly affected. Despite ongoing negotiations scheduled to resume on August 25, Indian trade officials express cautious optimism but acknowledge the stress and competitive pressure from rising Chinese exports to Europe. Trump criticized India's tariff policies and emphasized his intention to adjust trade terms, while Indian officials maintain a firm stance on not opening sectors like dairy and automobiles under pressure. The bilateral trade between India and the US reached $131.8 billion in 2024-25, with India holding a substantial trade surplus, but the looming tariffs threaten to disrupt this dynamic. Both sides continue talks amid broader geopolitical tensions, including disputes involving Russia and Ukraine, complicating the trade dialogue further.