๐จ ๐บ๐ธ U.S. Imposes 25% Tariff on ๐ฎ๐ณ India โ Trade Tensions Rise! ๐จ
โ ๏ธ The Big Move
๐ July 30, 2025 โ President Trump hits India with 25% tariffs on key exports, effective Aug 1โ7.
๐ฏ Why India?
- High import duties & trade barriers in India .
- Continued oil & arms trade with Russia.
- Others like Vietnam (20%) & Indonesia (19%) got lower rates โ India singled out. ๐ฅ What Gets Hit?
๐ Sectors: Auto parts, textiles, garments, jewelry, phone components.
๐ Possible export loss: โน1 Lakh+ Crore.
๐ GDP hit: -0.4% (FY 2025-26).
๐ Govt: โWeโll protect farmers & MSMEs.โ
๐ท๐บ The Russia Connection
- 35โ40% of Indiaโs crude โ from Russia (cheapest supplier).
- Trade jump: \$13B (2022) โก \$27B (2025) โ oil, fertilizers, high-tech goods.
- U.S. accuses India of supplying critical tech to Russia.
- Secondary Tariff Threat: 100โ500% on Russian energy imports.
- If cut off from Russian crude โ \$9โ11B/year extra oil bill ๐ฐ + inflation surge ๐. ๐ Global Tariff War Ripples
- Costlier Indian goods in U.S. markets.
- Washingtonโs warning to China & other Russian oil buyers.
- Global oil prices could tighten.
- India may increase the trade to Middle East, Africa, BRICS. ๐ฎ Possible Paths Ahead
1๏ธโฃ Negotiate โ Tariff may drop to ~20%, but India opens up to U.S. agri/dairy.
2๏ธโฃ Refuse โ Keep Russia ties, risk bigger sanctions.
3๏ธโฃ Pivot Away โ Avoid U.S. wrath, but fuel costs skyrocket.
4๏ธโฃ Realign โ Diversify trade partners, cut U.S. dependence.
