• US tariffs on Indian imports set at 25% effective August 1, 2025.
• Additional penalties linked to India's purchase of Russian oil and military hardware.
• Concerns raised about the impact on India's GDP and key export sectors.
• Indian officials express commitment to secure favorable trade agreements.
• Apple's iPhone exports from India remain temporarily exempt from new tariffs.

US President Donald Trump announced on July 30 a 25% tariff on all goods imported from India, effective August 1, 2025, amid a backdrop of stalled trade talks and ongoing geopolitical tensions. Trump criticized India's high tariffs and its reliance on Russian military equipment and oil, stating, “They have always bought a vast majority of their military equipment from Russia and are Russia’s largest buyer of ENERGY” at a time when global pressure mounts for Russia to halt its activities in Ukraine, as reported by Channel News Asia and India Times.

The tariffs, which some economists warn could adversely affect India’s GDP and key industries such as pharmaceuticals, textiles, and automobiles, come as a surprise to many who expected progress in trade negotiations. "The tariff (and penalty) now proposed by the US is higher than what we had anticipated," said Aditi Nayar, chief economist at ICRA, underscoring potential pressures on India's economic growth, according to India Times and BBC.

India's Commerce Minister, Piyush Goyal, emphasized a commitment to reviewing the situation carefully, stating, “We will take all steps necessary to secure our national interest,” highlighting ongoing discussions despite tariff impositions. The Ministry of Commerce is engaged with stakeholders to assess the tariffs' implications for exporters, according to reports from India Times and HuffPost.

Despite these concerns, Apple CEO Tim Cook stated that the majority of iPhones sold in the US are manufactured in India, reflecting the country’s growing significance in the tech giant’s supply chain. Currently, Apple's iPhones exported from India remain exempt from the new tariffs due to existing exclusions for electronics, indicating that India's strategic importance is recognized amid the turmoil, according to findings from India Times and South China Morning Post.