Explained | From calling 'Tariff King' to imposing high import duties: How US toughened trade terms with India

New Delhi: From labelling India the 'Tariff King' to slapping sweeping import duties, US President Donald Trump has steadily hardened his trade stance on India.

These announcements are being seen as a pressure tactic to get New Delhi to agree to demands made by the US in the proposed Bilateral Trade Agreement (BTA).

Here is a list of Q&A (questions and answers) about US tariffs on India and its impact on domestic exporters:

What's the timeline of Trump's tariff actions against India?

Oct 2019: Trump labels India the "tariff king"

Sep 2024: Trump calls India a "tariff abuser"

Apr 2, 2025: US formally announces a 26 per cent import tariff on Indian goods, effective April 9.

Apr 5, 2025: White House executive order imposed a 10 per cent baseline tariff on imports, with country-specific tariff rates (16 per cent in case of India) scheduled to begin April 9.

Exemptions: Certain sectors kept out of these duties - pharmaceuticals, electronics, and energy products.

Apr 9, 2025: US pauses implementation of country-specific tariff rates (16 per cent in case of India) for 90 days, deferring it to July 9. The 10 per cent baseline tariff remains.

July 8, 2025: Suspension period further extended to August 1.

July 30, 2025: US announces 25 per cent tariff plus penalty on Indian goods. Penalty for buying crude oil and military equipment from Russia.

July 31, 2025: White House issues executive order for 25 per cent tariff to take effect August 7. No mention of penalty. The 10 per cent baseline duty and exempted sectors remain unchanged.

Aug 5, 2025: Trump says he will raise tariffs further on India "very substantially". Aug 6, 2025: Imposes an additional 25 per cent tariff, raising it to 50 per cent, on goods coming from India as a penalty for New Delhi's continued purchase of Russian oil.

What is the current import duty structure on Indian goods in the US?

From August 7, Indian goods entering the US are facing a 25 per cent (including 10 per cent baseline tariff) plus MFN (most favoured nation) rates plus trade remedy measures, if any. For example, India's shrimp exports have a zero MFN rate. But it already attracts a 2.49 per cent anti-dumping duty and a 5.77 per cent countervailing duty.

(Both these duties are trade remedy measures imposed by the US). So from August 7, Indian shrimp will face a 33.26 per cent levy (25 per cent plus 2.49 per cent plus 5.77 per cent). From August 27, domestic shrimp will attract a 58.26 per cent duty in the US (50 per cent plus 2.49 per cent plus 5.77 per cent).

Are there any other tariffs?

Yes. The US has imposed sector-specific tariffs on three categories - steel and aluminium (50 per cent); copper (50 per cent), and auto parts (25 per cent. These are also additional duties (means over and above existing levies, if any).

Which all sectors or product categories are exempted from these tariffs?

According to think tank GTRI, the 50 per cent tariffs will not be applicable on the exempted categories included finished pharmaceutical drugs, active pharmaceutical ingredients (APIs), and other key drug inputs; energy products such as crude oil, refined fuels, natural gas, coal, and electricity; critical minerals; and a wide range of electronics and semiconductors, including computers, tablets, smartphones, solid-state drives, flat panel displays, and integrated circuits.

In 2024-25, the bilateral trade between India and the US stood at $131.8 billion ($86.5 billion exports and $45.3 billion imports).

Which are the main export sectors that will bear the brunt of the high tariffs?

Sectors include textiles/ clothing, gems and jewellery, shrimp, leather and footwear, chemicals, and electrical and mechanical machinery.

How much were India's exports from these sectors in the last fiscal?  

Shrimp ($2 billion), organic chemicals ($2.7 billion), carpets ($1.2 billion), apparel-knitted ($2.7 billion), apparel - woven (2.7 billion), textiles, made ups ($3 billion), diamonds, gold and products ($10 billion), machinery and mechanical appliances ($7.7 billion), furniture, bedding, mattresses ($1.1 billion), and vehicle and parts ($2.6 billion).

What are the views of exporters on these tariffs?

Seafood exporter Yogesh Gupta: Now India's shrimp will become expensive in the US market.

Confederation of Indian Textile Industry (CITI): Huge setback. Deeply concerned. It will have a potential adverse impact.

Colin Shah, MD, Kama Jewellery: The move is a severe setback.

GTRI Founder Ajay Srivastava: The tariffs are expected to make Indian goods far costlier in the US, with potential to cut US-bound exports by 40-50 per cent.

Federation of Indian Export Organisations (FIEO): The announcement is "extremely shocking" and will impact 55 per cent of India's exports to America.

What are the tariffs on India's trade competitors?

After the new levy, India will attract the highest tariff of 50 per cent along with Brazil. After this, India's competitors will be much better placed in the US market as their duty is lower - Myanmar (40 per cent), Thailand and Cambodia (both 36 per cent), Bangladesh (35 per cent), Indonesia (32 per cent), China and Sri Lanka (both 30 per cent), Malaysia (25 per cent), Philippines and Vietnam (both 20 per cent).