Business News
5 min read | Updated on August 01, 2025, 09:50 IST
SUMMARY
Trump's tariffs: The tariffs in the list range from 10% to 40%, with Japan being charged 15%, Laos and Myanmar (40% each), Pakistan (19%), Sri Lanka (20%) and the United Kingdom (10%).
A US trade delegation will visit India on August 25 for the sixth round of bilateral trade negotiations, days after the August 1 deadline for the suspension of steep tariffs.
US President Donald Trump signed an executive order Thursday night imposing new tariffs on dozens of countries, including a 25% duty on Indian exports, as part of a sweeping recalibration of American trade policy.
The order, titled “Further Modifying The Reciprocal Tariff Rates,” affects 68 countries and the European Union and is set to take effect on August 7.
Trump on Wednesday announced a 25% tariff on all goods imported from India starting August 1, along with an unspecified penalty over New Delhi’s continued imports of Russian crude oil and defence equipment.
In a strongly worded post on his Truth Social platform, Trump criticised India’s trade policies, accusing the country of imposing some of the “highest” tariffs and “most obnoxious” non-monetary barriers globally.
He also took aim at India’s growing energy and defence ties with Russia, describing both countries as “dead economies.”
While the executive order confirms the 25% “Reciprocal Tariff, Adjusted” on Indian goods, it makes no mention of the penalty Trump referenced online.
India, which had previously faced a proposed 26% tariff in April before implementation was delayed, now finds itself among several nations confronting higher barriers to US markets.
India and the US teams recently concluded the fifth round of talks for a bilateral trade agreement in Washington.
A US trade delegation is expected to visit New Delhi on August 25 for another round of negotiations.
India has so far resisted US demands for tariff reductions on sensitive sectors such as agriculture and dairy, areas that farmers' unions have warned should remain off the table. India has never offered dairy tariff concessions in previous free trade agreements.
India is also seeking US relief on existing tariffs, including a 50% duty on steel and aluminium, 25% on automobiles, and other levies affecting sectors like textiles, leather, gems, jewellery, and seafood.
The Global Trade Research Initiative (GTRI), a New Delhi-based think tank, said that while the 25% tariff may appear severe, India’s position is not significantly worse than countries that signed deals with Washington. Those countries, including the UK, EU members, Japan, Indonesia, and Vietnam, accepted high tariffs and made deep concessions, ranging from zero tariffs on US farm products to energy purchases and defence deals.
The European Union faces a tiered structure, with goods carrying US duty rates above 15% exempted, while other items will be taxed proportionally. Countries like Laos (40%), Syria (41%), and Switzerland (39%) face the steepest tariffs under the revised schedule.
India retains the right under World Trade Organization rules to impose retaliatory tariffs should talks fail.
Country / Territory | Reciprocal Tariff, Adjusted |
---|---|
Afghanistan | 15% |
Algeria | 30% |
Angola | 15% |
Bangladesh | 20% |
Bolivia | 15% |
Bosnia and Herzegovina | 30% |
Botswana | 15% |
Brazil | 10% |
Brunei | 25% |
Cambodia | 19% |
Cameroon | 15% |
Chad | 15% |
Costa Rica | 15% |
Côte d'Ivoire | 15% |
D.R. Congo | 15% |
Ecuador | 15% |
Equatorial Guinea | 15% |
European Union | Varies (0% to 15%) |
Falkland Islands | 10% |
Fiji | 15% |
Ghana | 15% |
Guyana | 15% |
Iceland | 15% |
India | 25% |
Indonesia | 19% |
Iraq | 35% |
Israel | 15% |
Japan | 15% |
Jordan | 15% |
Kazakhstan | 25% |
Laos | 40% |
Lesotho | 15% |
Libya | 30% |
Liechtenstein | 15% |
Madagascar | 15% |
Malawi | 15% |
Malaysia | 19% |
Mauritius | 15% |
Moldova | 25% |
Mozambique | 15% |
Myanmar (Burma) | 40% |
Namibia | 15% |
Nauru | 15% |
New Zealand | 15% |
Nicaragua | 18% |
Nigeria | 15% |
North Macedonia | 15% |
Norway | 15% |
Pakistan | 19% |
Papua New Guinea | 15% |
Philippines | 19% |
Serbia | 35% |
South Africa | 30% |
South Korea | 15% |
Sri Lanka | 20% |
Switzerland | 39% |
Syria | 41% |
Taiwan | 20% |
Thailand | 19% |
Trinidad and Tobago | 15% |
Tunisia | 25% |
Turkey | 15% |
Uganda | 15% |
United Kingdom | 10% |
Vanuatu | 15% |
Venezuela | 15% |
Vietnam | 20% |
Zambia | 15% |
Zimbabwe | 15% |
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