Effective 7 August 2025, the U.S. has implemented a 25% tariff on Indian goods, including agriculture, apparel, electronics, pharmaceuticals, and seafood sectors. It has also denied India tariff exemptions, raising fears among exporters over rising costs and exposure to retaliatory actions.
Economists warn that the tariffs could shave off up to 40 basis points from India’s GDP, while putting pressure on the rupee. Despite the threat of secondary sanctions tied to India’s ongoing oil imports from Russia, U.S. firms—including Apple, Google, Tesla, and Amgen—maintain optimism about India’s long-term potential as part of the “China‑plus‑one” strategy.
