Trump Puts 25% Tax on India but Talks of Trade Go On
Donald Trump has set a 25% tax on goods from India starting August 1, 2025. He says talks of trade with India are still on, but calls BRICS an “anti-US” part in these talks.
On July 30, 2025, President Donald Trump said a big 25% tax on goods from India would start on August 1. This came with fines due to India’s oil and army deals with Russia. Trump gave reasons for this tax by saying India’s own taxes are too high and that its ways of trading are “tight” for US interests. The market took a hit—India’s Sensex fell about 800 points when the news came out.
India a “Friend,” Yet BRICS Makes Talks Hard
Even with this hard line, Trump called Prime Minister Narendra Modi a “good friend.” But, he tied India’s part in BRICS to bigger world troubles.
“They have BRICS, which is more or less a group of lands that don’t like the US... it's like a hit on the dollar.”
Trump hints that BRICS plays a tricky part in the talks of trade.
Talks Are Still On
Even as tariffs hurt, Trump said that trade talks with India keep going. He spoke of possible tariff changes and noted that a deal might still come out. Indian leaders still want a trade deal that aims to grow two-way trade to $500 billion by 2030.
What This Means for India
India sold about $87 billion in goods to the U.S. in 2024, covering areas like drugs, clothes, jewels, and car parts. Experts warn that the tariffs could cut deep into India's money from exports—mainly for drugs, which are a big part of India's sales abroad. India had before said no to opening key farm areas like wheat and dairy, due to home worries.
Effect on World Trade and Supply Lines
Trump’s move makes people wonder about India’s spot in world making things. Experts think that India is still a good pick beyond the common "China-plus-one" plan, but the tariff issue makes investing hard. Big companies like Apple might see delays in getting electronics.
Push from Politics and Economy
Indian leaders against this spoke up, calling it not needed and not fair. Local trade groups—mainly in drugs and jewels—talked of wide effects. They pointed to India’s free trade deals with places like the UK and Australia as possible help. Many now see a chance for India to mix up its trade friends.
What Will Happen?
August 1: Put on a 25% tax and more fines
Early August: U.S. trade group goes to New Delhi to talk a deal
September: People watch close for any trade deal or more time on no tax
India might want cuts by other ways or places if U.S. talks stop
The Big Idea
This step shows a careful mix of soft talk and hard trade rules. While Trump keeps showing he's open to a good deal, the tax move—and seeing BRICS as foes—ups the game for India. Trade talkers on both parts are pushed to make things clear by the start of August.
