India Among Hardest Hit at 25% As Trump Orders Sharp Tariffs on 70 Nations

In a sweeping escalation of his administration’s protectionist trade policy, former U.S. President Donald Trump has signed an executive order imposing steep reciprocal tariffs on a wide range of imported goods from nearly 70 countries, including key trading partners such as India, Canada, Brazil, and Taiwan.

Under the new order, Indian exports to the United States will face a 25% tariff, one of the more severe rates among the targeted nations. The tariffs are scheduled to take effect on August 7, giving just a week’s notice to exporters and trade partners.

Trump’s “Reciprocal Tariff” Push Revives Protectionist Trade Strategy

The policy is framed by the Trump administration as a corrective measure to long-standing trade imbalances. “For too long, we’ve let other countries benefit from one-sided trade deals,” Trump said during a brief media appearance. “This order simply says—we match your tariffs with ours. No more, no less.”

Other countries hit by the order include Canada, which faces a 35% tariff, Taiwan at 20%, and Brazil at 10%. Most countries not specifically mentioned in the order will continue under a default tariff rate of 10%, officials said.

The executive action revives Trump’s earlier campaign rhetoric around “fair and reciprocal trade” and signals a return to more aggressive trade nationalism. It also comes at a politically charged time, with the former president ramping up his 2024 campaign messaging amid primary battles and a deeply divided Congress.

Legal Scrutiny Over Trump’s Use of Emergency Trade Powers

While Trump’s legal team has maintained that the order falls within the scope of executive powers—citing provisions under the International Emergency Economic Powers Act (IEEPA)—the move is expected to face significant legal challenges. A federal appeals court is currently reviewing the limits of presidential authority in imposing unilateral tariffs, and a ruling is anticipated in the coming months.

India Faces 25% U.S. Tariff: Impact on Key Export Sectors

For India, the impact could be substantial. The 25% duty affects a wide basket of exports, ranging from pharmaceuticals and automotive components to specialty chemicals and textiles. Trade analysts warn that the tariffs could reduce Indian export earnings by billions annually and strain diplomatic ties at a time when India is also deepening energy and defense relations with countries like Russia.

While the Indian government has not issued a formal response yet, sources within the Ministry of Commerce have confirmed that discussions are underway to assess both the short-term trade disruption and broader strategic implications.

What’s Next for U.S.-India Trade Relations?

Economists believe the ripple effect of these tariffs could stretch beyond bilateral trade flows. “This isn’t just about India or Canada—this fundamentally alters how multilateral trade works,” said a senior economist at a Washington-based think tank. “If reciprocity becomes the baseline for global commerce, we may see a fragmentation of trade norms built over decades.” The Nifty 50 index saw a steep correction in the last couple of days, amid the recent set of developments. 

As of now, U.S. industries that rely on Indian inputs—particularly in generic drugs and software services—are bracing for potential cost escalations. Meanwhile, Indian exporters are recalibrating pricing strategies and exploring alternate markets in anticipation of the new tariff regime.

Whether this aggressive tariff move will hold up in U.S. courts or result in reciprocal actions from affected countries remains to be seen. But one thing is clear: the rules of global trade are once again being rewritten—and India has found itself squarely at the center of the storm.