U.S. President Donald Trump on Thursday (July 31, 2025) introduced a 25% tariff on Indian imports into the U.S., efficient August 1, following a 90-day pause in tariffs introduced in April. In a submit on the platform Truth Social, he referred to as India’s tariffs “too high” and stated that it had “strenuous and obnoxious non-monetary trade barriers.”
He additionally criticised India for its fossil gas commerce with Russia. Mr. Trump has been attempting to dealer a ceasefire between Russia and Ukraine to cease the three-year ongoing warfare between the 2 nations, with no agency deal in sight but.
In this context, right here is an summary of the India-U.S. commerce.
How a lot does India export to and import from the U.S.?
In 2024-25, India’s exports to the U.S. have been valued over 86,000 million {dollars}, with imports being over 45,000 million {dollars}. In phrases of proportion, the U.S. made up round 20% of India’s exports and 6.3% of its imports.
India has all the time imported greater than it exported to the U.S. Exports to the U.S. fell sharply in January this 12 months and have continued to stay under ranges not seen after 2022. India exported in March this 12 months the bottom since April 2016.
What does India ship to the U.S.?
India’s main exports to the U.S. embody telecom gear, drug formulations and biologicals, textiles, petroleum, iron and metal, pearl and valuable stones and extra.
However, there are variations within the proportion of every of those merchandise that India exports to the U.S. in comparison with complete exports of the product to all nations. For occasion, India sends over 63% of all telecom exports to the U.S. For petroleum merchandise, that is 7%.
It is to be famous that the 25% tariff rule doesn’t embody some merchandise like prescription drugs, electronics and ICT items, and petroleum merchandise.
India-Russia commerce
One of Mr. Trump’s criticisms is India’s commerce with Russia within the space of vitality. As a part of its opposition to Russia’s actions in Ukraine, the European Union together with different Western nations imposed sanctions on Russian items and people, and minimize down on its imports of Russian vitality after 2022.
However, India elevated its imports of Russian vitality from round 2% of complete Russian exports to over 20% in response to cheaper costs of discounted Russian oil.
In a media briefing on Friday (August 1, 2025), the Ministry of External Affairs Spokesperson Randhir Jaiswal stated that selections relating to the sourcing of vitality have been “based on the price at which oil is available in the international market and depending on the global situation at that time.”
Similarly, External Affairs Minister stated in 2023 that the nation needed to supply oil the place it was least expensive. He identified that European nations are “diverting production out of the Middle East and raising prices.”
Besides vitality imports, India’s imports of Russian navy gear was one other of Mr. Trump’s complaints. In 2024, India imported round 40% of its navy imports from Russia. Exports to India made up 34% of Russia’s complete exports.
According to SIPRI, Russia was the highest provider to India, adopted by France and Israel in 2024. However, Indian sources instructed Reuters that the nation was seeking to pivot away from Russian arms since Russia’s munitions have been depleted as a result of its warfare with Ukraine. This additionally aligns with Prime Minister Narendra Modi’s ‘Make in India’ programme to spice up home manufacturing.
On navy procurement, Mr. Jaiswal stated sourcing was decided “solely by our national security imperatives and strategic assessments” on Friday.
(With inputs from Reuters)
