US Imposes New Tariffs on India Amid Trade Tensions Targeting Key Sectors with 26 Percent Import Duty Increase

Welcome back, listeners, to "India Tariff News and Tracker." Today is June 19, 2025, and the trade news between the United States and India remains front and center as tariff policies from the Trump administration continue to shape bilateral economic dynamics. On April 2, the Trump administration announced sweeping new tariffs on imports from nearly all U.S. trading partners, with India facing a headline 26 percent tariff on its exports to the United States. However, a pause for 90 days followed, meaning that as of now, a 10 percent blanket tariff is being applied to imports from India and most other countries. There are also ongoing 25 percent tariffs specifically targeting steel, aluminum, and automobile imports from India. These measures are a major component of former President Trump’s revived policy of reciprocal tariffs which, according to an official White House fact sheet, aims to address long-standing concerns about “unfair trade practices” and large trade deficits. The Office of the U.S. Trade Representative has pointed out that India’s average Most Favored Nation tariff rate remains the highest among major economies at 17 percent in 2023, with significant barriers still in place for agricultural and certain manufactured goods. In the lead-up to the April 2 tariff announcement, India sought to ease tensions by reducing some duties on U.S. products, including Harley-Davidson motorcycles and bourbon whiskey, and offered further concessions that could benefit over half its American imports, which reached a record $129 billion in bilateral trade last year. Key sectors in India under pressure from the new tariffs include gems and jewellery, marine products, electronics, and auto parts. Meanwhile, the textile and apparel sector might gain a competitive edge since China, a major competitor, faces an even higher 30 percent tariff under the revised U.S. rules, down from the previous 145 percent after a temporary agreement. For those tracking sectoral impacts, according to ClearTax, U.S. tariffs of 27 percent now affect most Indian goods, with automobiles, auto parts, steel, and aluminum singled out for 25 percent duties. Pharmaceuticals and semiconductors remain exempt. Despite these figures, the direct hit to India’s overall export revenue is expected to be limited—exports to the U.S. account for about 18 percent of India’s global total, and the most affected segments represent a small fraction of that. India has responded with caution and measured concessions, seeking to maintain favorable ties with Washington while protecting domestic producers. Observers note that New Delhi is wary of escalating tensions and has balanced its strategy to defend economic growth while keeping trade channels open. Listeners, that wraps up this week’s update on U.S.-India tariffs and trade headlines. Thanks for tuning in, and don’t forget to subscribe for the latest updates on "India Tariff News and Tracker." This has been a quiet please production, for m This content was created in partnership and with the help of Artificial Intelligence AI.