- Trump criticized India for having some of the highest trade barriers globally and being a big buyer of Russian goods, which he framed as supporting Moscow’s war efforts
- India’s commerce ministry did not provide an immediate comment about the tariff announcement so far
- These new tariffs are poised to affect India’s merchandise exports to the US, which were valued at approximately $87 billion in 2024
Today, the US President Donald Trump announced via Truth Social that effective August 1, India will face a 25% tariff on its exports to the US. Additionally, India will incur an unspecified penalty for its purchase of Russian military equipment and energy.
Trump criticized India for having some of the highest trade barriers globally and being a big buyer of Russian goods, which he framed as supporting Moscow’s war efforts. The tariffs revive earlier threats from April and were announced amid stalled trade talks between the two countries.
India’s commerce ministry did not provide an immediate comment about the tariff announcement so far.
On Truth Social, Trump wrote: “Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country.”
These new tariffs are poised to affect India’s merchandise exports to the United States, which were valued at approximately $87 billion in 2024. This will specifically target labor-intensive goods such as textiles, pharmaceuticals, gems and jewelry, and petrochemicals.
According to the official US data, the US recorded a $45.7 billion trade deficit with India last year.
Crypto market sees an immediate 4% drop
Following tariff announcements, the crypto market dropped roughly 4%, with Bitcoin and Ethereum suffering setbacks.
Analysts see inflation and a weakening dollar, driven by trade tension, as factors that crypto (particularly Bitcoin) may weather better than traditional assets. In the long term, some predict that this may even benefit digital assets like cryptocurrencies.
India ranks among the fastest-growing crypto jurisdictions globally, and it leads the world in crypto adoption with over 107 million users, accounting for roughly 7% of the population.
According to Statista, the country’s crypto market revenue is expected to reach $9.7 billion this year, with it increasing to $10 billion by 2026.
Despite such prominent usage, India lacks a comprehensive legal framework, as the crypto segment generally operates in a regulatory gray zone.
However, a proposed regulatory framework, the COINS Act 2025, seeks to revolutionize cryptocurrency policy in the country. The key objectives include the potential removal of the current 30% crypto tax, the protection of self-custody rights, and the establishment of a dedicated new oversight body, CARA.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
