Listeners, today's top story is the escalation of tariff tensions between the United States and India. US President Donald Trump has just announced that, effective August 1, 2025, India will face a 25 percent tariff on goods entering the US, alongside an additional penalty for India's continued energy and arms purchases from Russia. Trump made this announcement on Truth Social, emphasizing that while India is considered a friend, years of limited trade are due to what he calls “the most strenuous and obnoxious non-monetary trade barriers of any country.” According to the Times of India, this tariff is part of Trump’s reciprocal trade agenda, which aims to address what he views as persistent unfairness in India’s high tariffs and restrictive regulations against American goods.

Commerce Secretary Howard Lutnick confirmed that these tariffs will not be delayed, stating, “No extensions, no more grace periods. August 1, the tariffs are set. They’ll go into place. Customs will start collecting the money, and off we go.” The backdrop to all this is a deadlocked trade negotiation, with sources like Axios reporting that a final trade deal between India and the US remains elusive, despite many months of talks and public signals that an agreement was near.

India’s government, as reported by Reuters via the Times of India, is preparing for tariffs between 20 and 25 percent on specific exports, in line with Trump’s public comments. One Indian official noted that these higher tariffs are expected as a temporary measure, and that a trade delegation is scheduled to visit Washington in mid-August to continue negotiations. US Trade Representative Jamieson Greer echoed this sentiment, telling Bloomberg, “We continue to speak with our Indian counterparts, we’ve always had very constructive discussions with them...but I think we need some more negotiations on that with our Indian friends to see how ambitious they want to be.”

Industries across India are bracing for higher costs and the threat of disrupted supply chains, especially in sectors like electronics, seafood, and apparel. At the same time, experts note that India’s relatively low dependence on US exports—at just 2.2% of its GDP according to Bloomberg—may soften the blow, but the immediate outlook remains uncertain. With Trump’s aggressive “reciprocal tariffs” policy already in effect for countries like Indonesia and the Philippines, India is now facing intense pressure to make concessions.

Listeners, the stakes are high, and we’ll keep tracking every development as India and the US race to resolve their differences. Thanks for tuning in to “India Tariff News and Tracker.” Don’t forget to subscribe for the latest updates. This has been a Quiet Please production, for more check out quietplease dot ai.

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