Trump, following his recent declaration of a 25 percent tariff on India, declared that America has become the "hottest" country.
In a significant trade development, US President Donald Trump announced a 25% tariff on Indian imports, effective August 1st, 2025. The move is a response to India's continued purchase of Russian oil, a decision that Trump claims supports Russia's war effort in Ukraine.
The Indian government has responded with firm opposition, calling the tariffs "unfair, unjustified, and unreasonable." Prime Minister Narendra Modi reiterated this stance in a rally, emphasizing that India will not compromise on the interests of farmers, small-scale industries, and domestic producers. The Indian government has also affirmed that it will take all steps necessary to safeguard the nation's interests.
The tariffs, which effectively raise the total duty on affected Indian products to 50%, are set to take effect from August 27, 2025, according to a notice by the US Customs and Border Protection. These duties target products imported from India that are entered or withdrawn for consumption in the US on or after that date.
The impact on India could be substantial. About 66% of India’s exports to the US, valued at $60.2 billion, could be affected, including key sectors such as textiles, gems and jewelry, shrimp, carpets, and furniture. This poses a major trade challenge for the Indian economy, potentially causing significant export volume reductions and forcing adjustments to maintain economic growth and competitiveness.
In a post on Truth Social, Trump wrote that the tariffs, coupled with "really dumb, pathetic, and crooked politicians," were having a devastating impact on America's future and survival. However, Trump also claimed that America, one year ago, was a dead country, but now it is the "hottest" country anywhere in the world, and that the tariffs are making America "great and rich again."
Meanwhile, the US President cited India's high tariffs and non-monetary trade barriers as reasons for the tariffs. He also warned Russia's failed former President Medvedev to watch his words, as he is entering dangerous territory. The US does relatively little business with India due to their high tariffs, among the highest in the world.
Despite the challenges, the Indian government remains optimistic about its future. In a statement, the Indian government expressed confidence that they will continue their swift journey of inclusive and consistent development towards the goal of Viksit Bharat 2047. Union Minister of Commerce and Industry Piyush Goyal stated that the government gives utmost priority to the safeguarding of the welfare of various stakeholders and will take all necessary steps to safeguard national interest.
As the situation unfolds, both nations will need to navigate this complex trade dispute with diplomacy and a focus on protecting their respective national interests.
- Despite the tariffs imposed by the US, India remains optimistic about its future, with the government asserting a commitment to continuous development towards the goal of Viksit Bharat 2047.
- The Indian government, in response to the US tariffs, has affirmed that it will take all steps necessary to safeguard the nation's interests, particularly those of farmers, small-scale industries, and domestic producers.
- The high tariffs and non-monetary trade barriers in India have contributed to relatively less business with the US, raising concerns about the impact of the US tariffs on Indian products.
- In the realm of India's diverse art and cinema, Bollywood, the country's film industry, may face unforeseen challenges due to the potential shifts in international trade policies, such as the US tariffs, impacting the economy at large.
