Donald Trump and Tariff News: US President Donald Trump's tough tariff policy has had a very adverse impact on India's trade with the US. In which some sectors are most affected, it has become necessary to have a trade deal between India and the US. India and the US have had long-standing trade relations, but due to America's reciprocal tariffs and strict trade policy, relations have become tense. In April 2025, the US increased tariffs on Indian products from 10% to 25% and then to 50% in August. The reason given for this tariff was the purchase of crude oil from Russia and trade imbalance.
The increase in US tariffs has hit India's exports. According to a report by the Global Trade Research Initiative in late November, India's exports have declined by 28.5%. Exports in May 2025 were $8.8 billion, which fell to $6.3 billion by October. According to the calculation, there has been a loss of $2.5 billion in 5 months. More than half of India's exports have been affected by high tariffs. The labor-intensive sector has been particularly affected. The impact on sectors that rely on labor is a serious matter. In such a situation, it is important for India and the US to have a trade deal. Trade between the two countries is linked to exports and employment.
Especially, the textile, garment, gem jewelry, chemical and agricultural sectors are continuously incurring losses. In such a situation, Indian exporters benefit from the trade deal. Since laborers working in labor-intensive sectors and dependence on American orders, it is necessary to remove or reduce tariffs. However, India has tried to restructure the economy by suppressing American tariffs. According to statistics, India has learned its lesson and strengthened its supply chain, investment strategy and domestic production. India has also explored some other options, including a trade deal between India and New Zealand. Now, talks are underway with the European Union on a trade deal.
