The US has issued a formal notification to impose 25 percent additional tariffs on goods imported from India. This new tariff will be effective from August 27, 2025 at 12:01 pm (Indian time at 9:30 am). In the notification issued by the Trump administration, it has been said that this tariff is associated with the threats given by the Russian government to the US and under this India has been targeted.

What goods will be discount on

The effect of the new tariff can be seen on areas like jewelery, sea food, carpet, furniture chemicals, and auto parts. Some areas like human aids such as food, pharmaceuticals are still exempted from it. The goods which are in transit loaded on the ship before 27 August 2025 and reach America by 17 September 2025 will not put exemption on exemption.

Books, movies, posters, records, photos, CDs, art work will be exempted from additional tariffs. Some special sectors which have already been included in other executive orders, such as iron, steel, almunium, passenger vehicle, copper products will be discount on these items.

India, America’s third largest exporter

Donald Trump wants India to enter the US in its agriculture and dairy markets, but the Modi government has made it clear that it will take decisive steps to protect the interests of the farmers of the country.

India and Vietnam are the third largest exporter in the US after 9 per cent. In the last five years, India has increased its market share in the US on the price of China, which has increased from 6 per cent to 9 per cent, while China’s stake has come down from 38 per cent to 25 per cent.

Also read: How much loss in export to India with 50% tariff of Trump? China and Vietnam can take advantage; Learn how

There is a situation of tension between America and India. US President Donald Trump is constantly pressurizing India. He is angry about India’s buying oil from Russia and for this reason he has also imposed 50 percent tariff. However, India has made its side clear on this matter. India has said that he will buy oil from where he will get cheaper.

India’s Ambassador to Moscow Vinay Kumar has given a clear answer to the US. He has said clearly that Indian companies will not buy expensive oil. Russia’s official agency Tass In an interview given to, he said, “Our policy is clear. Indian companies will choose the deal that will be beneficial for them. ” He said that energy security is a priority for the people of India.

Trump is pressurizing India on relief to China

The Trump administration has been criticizing India for buying crude oil from Russia at a discounted rate. Interestingly, Washington is not criticizing China, the biggest importer of Russian crude oil. Defending its purchase of crude oil from Russia, India has been saying that its energy purchase is inspired by national interest and market mobility.

The trade deal between India and America did not even talk

There was going to be a trade deal between India and America, but it has not been agreed. Trump wants India to deal with agriculture and dairy sector, but India is not ready about it. He had already said that the issues related to the farmers cannot be compromised.

External Affairs Minister S Jaishankar had recently said in the Economic Times World Leaders Forum that India will not compromise the interests of its farmers and small producers. Jaishankar had termed the American tariff wrong and said that India’s trade policy is based on the safety of domestic stakeholders.

There is a situation of tension between India and America. President Donald Trump first imposed 25 percent tariff on India, but after that he imposed 25 percent more tariffs. In this way, a total tariff was made 50 percent. Journalists questioned Trump about talks with India. According to the Reuters, in response, Trump showed a tough attitude and said that there will be no conversation till the issue is resolved.

Trump has imposed the most tariffs on India and Brazil. Both these countries are almost ready to bear the burden of 50-50 percent tariffs. Trump was asked whether the conversation with India can now be accelerated. In response to this, Trump said, no, ,Till we solve this issue, there will be no talk.,

Why India and America’s trade deal is stuck

Trump was putting a lot of pressure on India about the trade deal. They want India to compromise on agriculture and dairy sector. The Indian market should be opened for America’s dairy products, but India is not ready for it. He has given a clear message on this matter. Prime Minister Narendra Modi said on Thursday (August 7) that farmers are the first for the country. There will be no compromise on issues related to them.

Why Trump is showing a tough attitude towards India

Trump started with anger trade deal and after that he started showing strict attitude by taking Russia’s name. The Trump government said that India buys oil from Russia, Trump is angry with it. America says that Russia is using its money for war.

#Watch Responding to ani’s question, ‘Just to follow up India’s tariff, do you expect increase trade negotiations since you have announced the 50% tariffs? Get it resolved. “

(Source: US Network Pool Via Reuters) pic.twitter.com/exaqciksjd

– ANI (@ani) August 7, 2025

Us baseline tariff: The future of 10% baseline tariffs imposed on imports from all countries on April 2 by the Trump administration has now become the focal point of negotiations deciding the initial outline of the Indo-US trade agreement. According to experts associated with the case, this issue is being raised prominently in the ongoing conversation between New Delhi and Washington.

India objected to objection, demand to remove tariffs from America
According to sources associated with the negotiations, Indian negotiaters have demanded from the US side that not only 10% of the baseline tariffs should be removed, but also the proposed 16% additional fee from July 9 should not be applied. India’s attitude is clear that if America does not remove this fee, it will also have the right to continue the counter tariff equally on American goods.

Fifth round conversation is going on in Delhi
On June 4, a high -level delegation led by US trade representative Brendon Lynch reached Delhi. This is the fifth face to face between the two countries on this issue. This team will now remain in Delhi till June 10, whereas earlier it was described as a journey of only two days.

“Tariffs should be removed together from both sides”
A senior official said, “The ideal situation will be that as soon as there is an interim agreement, 10% baseline tariffs applied to Indian goods and 16% fees from July 9 should be abolished together. Otherwise India will also have the right to continue a total tariff on America’s goods.”

Modi-Trump’s joint announcement referred to
The meeting between Prime Minister Narendra Modi and US President Donald Trump in Washington on 13 February and a shared statement emphasized the need for ‘Mutual Beneficial’ and ‘Fair Trade Terms’. In this sequence, under ‘Mission 500’, a target has been set to bring bilateral trade to $ 500 billion by the year 2030.

“Equality, balance and public acceptance is necessary”
Another official associated with the talks said, “Both countries are sovereign – one oldest democracy and the second largest democracy. America is the largest economy and India is the fastest growing economy. In such a situation, any agreement should be balanced, justified and acceptable for people.”

India has also indicated that it is ready to open its market for American goods, provided America also respond in equal way. An official said, “Our business is mutually complementary, not competitive.”

India objected to America-UK deal
Citing Britain’s experience, India made it clear that it will not adopt any model in which tariffs remain. Britain got some exemption in the ‘Economic Prosperity Deal’ (EPD) received from the US, but 10% baseline tariff is still applicable.

Deal race before July 9
The two countries want to finalize an ‘Early Harvest Deal’ before July 9, so that the large tariff can be relieved before it is implemented. After this, work on full bilateral trade agreement (BTA) is likely to be completed by September-October 2025.

Goyal’s visit to America was also important
During this period, India’s Commerce and Industry Minister Piyush Goyal also lived in the US from 17 to 22 May, where he held important meetings with his counterpart US Commerce Secretary Howard Lutnik and US Trade Representative Jamison Greece. The impact of these meetings is now clearly visible in the ongoing conversation in Delhi.

India US Trade Deal: The ‘Zero-for-Zero’ tariff model will not be included in the proposed bilateral trade agreement between India and the US. According to government sources, such a strategy is not practical due to a big difference in the level of economic development of the two countries.

Work on big package deal

Under the ‘Zero-for-Ziro’ model, the two countries completely eliminate tariffs on each other’s products. But officials say that such agreements are possible between developed countries like America and European Union, not with a developing country like India.

A senior official told PTI that the trade deal is not on the basis that “if the US removes the tariff on electronics, we will also remove.” He said that India and America are working towards a comprehensive package deal, which will include issues like goods, services and non-tariff barriers.

The negotiation of this deal started in March 2025 and its first phase has been targeted to be completed by September -October. At present, there is a trade of about $ 191 billion between India and the US, which is targeted to take up to $ 500 billion by 2030.

India in better position

Currently, there are yet to have sector -boggling discussions between the two countries. The Government of India believes that it is in a state of better preparation for business agreements compared to other countries. At the same time, the concept of ‘Zero-for-Ziro’ was introduced by Delhi-based think tank ‘Global Trade Research Initiative’ (GTRI), but the Indian government is now looking forward to a balanced and comprehensive dialogue.

The major demands of the US in this conversation include industrial products, electric vehicles, wine, petrochemicals, dairy and agricultural products such as apples, nuts and alfalfa. At the same time, there is a demand for concession in tariffs on labor intensive sectors like Textile, Garment, James and Jemes and Jewelery, Leather, Plastic, Chemicals, Oil Seeds, Shrimp and Horticulture.

$ 35 billion trade surplus from America

Let us tell you that America has been the biggest business partner of India for the last three years. In 2023-24, India recorded a $ 35.3 billion trade surplus with the US. India’s top exports consisted of medicines ($ 8.1 billion), telecom equipment ($ 6.5 billion), precious gems ($ 5.3 billion) and petroleum products ($ 4.1 billion). At the same time, India imported products such as crude oil ($ 4.5 billion), petroleum ($ 3.6 billion), coal ($ 3.4 billion) and aerospace parts ($ 1.3 billion) from the US.

Overall, the Indo-US trade agreement will not be based on any unilateral concessions, but is being created from a long-form and strategic point of view, which will be designed keeping in mind the domestic priorities and global trade balance of the two countries.

Also read: US-China Trade War: America-China trade war can become a threat to India, Moody’s increased concern