Impact of Trump’s Tariffs on India

• US President Donald Trump imposed 25% tariffs on India’s imports, plus a penalty.

• The tariffs are attributed to India’s trade and non-tariff measures and its dealings with Russia.

• The tariffs are paid by importers, making Indian goods more expensive.

• The impact on India’s GDP is expected to be only 0.2%, lowering growth to 6.4% if imposed.

• Sectors such as garments, precious stones, auto parts, leather products, and electronics could face a pinch and need to rework their strategies.

• Some competing nations like Vietnam, Korea, and Indonesia have lower tariffs compared to India.

• The first tranche of a trade deal between India and the U.S. was announced in February 2025.

• Trump announced his Liberation Day reciprocal tariffs on April 2, including a 10% baseline tariff for all countries and additional tariffs on a country-by-country case.

• A 90-day pause on these tariffs was announced to reduce the U.S.’s trade deficit with most of its trading partners.