Trump's 25% tariff threat puts India–US trade on edge
advertisementIN NUMBERS$129.2B — Total India–US goods trade in 2024.$87.4B — US imports from India in 2024 (+4.5% from 2023).$45.7B — US goods trade deficit with India in 2024.35% — Russia's share of India's oil imports in Jan–Jun 2025.44.5% — Share of US diamond imports sourced from India.$13B — US imports of Indian pharmaceuticals in 2024.IN DEPTH
The White House's tariff warning comes as part of a broader trade push targeting dozens of countries, with rates on some imports climbing as high as 50%. While Trump says "India is our friend," he accuses New Delhi of maintaining some of the world's highest tariffs and of deepening ties with Moscow despite the war in Ukraine.India's economic relationship with Russia is longstanding, spanning oil and gas, steel, railways, defence and pharmaceuticals. In the year ending March 2025, bilateral trade hit a record USD 68.7 billion, with Russian crude making up more than a third of India's oil supply.The US is India's largest export market. Some of the most exposed sectors under Trump's 25% threat include:Pharmaceuticals — $13B in 2024 US imports from India (5.3% of total).Diamonds — $6.7B, but 44.5% of all US diamond imports.Textiles — Rugs (35.1%), cotton goods (44.5%), apparel (14%).Tea & Spices — 14.5% of the US market share.
Even small changes in tariff rates could shift buying patterns in these concentrated markets, where India dominates.BIG PICTURETrump's proposed duties on India are part of a sweeping tariff expansion. The administration is applying new or higher rates on steel, aluminium, autos, copper parts, and more. Canada, Mexico, Malaysia, Thailand, and other nations are also under threat.
For India, the stakes are strategic as well as economic. U.S. tariffs could weaken export competitiveness, while a refusal to curb Russian oil purchases could invite further penalties. New Delhi is exploring ways to ease tensions, including boosting U.S. imports, but has ruled out any immediate retaliation.WHAT THEY SAID'While India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high.' — Donald Trump, Truth Social.- EndsTune InMust Watch
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