Trump Slaps 25% Tariff on Indian Exports to U.S.

President Donald Trump has announced that the U.S. will impose a 25% tariff on Indian exports following the collapse of negotiations over a limited trade agreement, Kathryn Palmer reported for USA Today.

The U.S. accounts for one-third of India’s pharmaceutical exports. (Photo: Adani Ports and SEZ Ltd Facebook)

Trump announced the new import levy via his social media platform, Truth Social, just two days before a broader wave of reciprocal tariffs takes effect against dozens of countries.

These new tariffs build on an existing baseline of 10%. Trump also warned this week that countries not entering separate trade agreements with the U.S. could soon face baseline tariffs of 15% to 20%.

India, the world’s fifth-largest economy, counts the U.S. as its top trading partner—though China is a close second.

In 2024, India exported $87 billion worth of goods to the U.S., with top categories including pharmaceuticals, jewelry, petrochemicals, and textiles. Services exports—mainly IT and professional services—totaled an additional $33 billion.

The U.S. is India’s third-largest foreign investor and currently runs a $45.7 billion trade deficit with the country.

The U.S. accounts for one-third of India’s pharmaceutical exports, which rose 16% last year to $9 billion. India also supplies smartphones, precious stones, jewelry, and home textiles to the American market.