Donald Trump stated today Wednesday that exports from India to the United States will face a 25% tariff starting on August 1, thus opening a new chapter in the trade war against most of the world.
Furthermore, the Asian giant would face an additional sanction due to its dependence on Russian energy and military equipment.
India is one of the main exporters to the United States, and last year, almost 90,000 million dollars in goods entered the country from India.
Why did Trump impose a 25% tariff on India?
In a post on Truth Social, Trump said today that despite India being “our friend”, the United States has done “relatively little business with them because their tariffs are too high,” and added that India has “the most burdensome and detestable non-monetary trade barriers of any country”.
He also pointed out that India “has always bought most of its military equipment from Russia and is the largest buyer of energy from Russia.”
Therefore, he continued, India will pay a 25% tariff, plus “a penalty for the above” starting on the first day of next month.
The United States Trade Representative, Jamieson Greer, told CNBC on Monday that the United States needs more time to engage in dialogue with India and assess the country’s willingness to further open its market to American products.
Bloomberg reported on Tuesday that any rate higher than 20% would be disappointing for India, which has been seeking a better deal than the 19% that Trump offered to Indonesia and the Philippines.
This year, India became one of the main exporters of mobile phones to the United States after companies like Apple moved their production from China to avoid Trump’s tariffs. According to Bloomberg, Apple exported $17 billion worth of cellphones in 2024.
Donald Trump’s decision could affect the price of cellphones in the United States.