Sat Aug 02 21:20:00 UTC 2025: Here’s a summary and a rewritten news article based on the provided text:
**Summary:**
President Trump has imposed a 25% tariff on imports from India, citing India’s trade practices and its dealings with Russia. While the overall GDP impact on India is projected to be small (0.2%), certain sectors like garments and auto parts could be significantly affected. The move throws into question the possibility of a bilateral trade agreement between the two countries, despite previous commitments to finalize one by fall 2025. India has expressed its displeasure and is reserving its right to retaliate at the WTO. Factors souring relations include India’s dealings with Russia, resistance to opening agricultural sectors to trade, and refuted claims by Trump regarding a ceasefire with Pakistan. While the US has recently struck trade deals with other nations, a deal with India appears less likely.
**News Article:**
**Trump Slaps 25% Tariffs on Indian Imports, Trade Deal Prospects Dim**
**Mumbai, August 3, 2025** – In a move that has sent ripples through the Indo-US trade relationship, US President Donald Trump announced a 25% tariff on imports from India, effective immediately. The decision, made public on July 30th but coming into force now, throws into doubt the possibility of a comprehensive trade agreement previously slated for completion by the fall of 2025.
President Trump, in statements released on social media, cited India’s existing tariff and non-tariff barriers, as well as its continued economic and military cooperation with Russia, as justification for the tariffs. Further complicating matters is the potential for an additional penalty, possibly a 10% tariff targeted at BRICS nations, which could bring the total tariff burden on Indian goods to 35%. Legislation is also pending in the US that could impose a staggering 500% tariff increase on India, China, and Brazil for their dealings with Russia.
While the Bank of Baroda estimates the overall impact on India’s GDP to be relatively minor (a projected 0.2% reduction), specific sectors such as garments, precious stones, auto parts, and leather products are expected to bear the brunt of the new tariffs. These industries will face stiff competition from nations with lower tariffs on goods entering the U.S, such as Vietnam, Korea, and Indonesia.
The timing of the announcement is particularly sensitive, considering the commitment made by Prime Minister Narendra Modi and President Trump earlier this year to finalize the first stage of a trade agreement by the fall. The new tariffs come after months of negotiation meetings in both Delhi and Washington.
Sources within the Indian government have expressed disappointment with the decision, suggesting that several factors have contributed to the souring of relations. These include India’s resistance to opening its agriculture and dairy sectors to foreign competition, its continued purchase of discounted Russian oil, and Trump’s disputed claims of brokering a ceasefire between India and Pakistan.
India has already notified the World Trade Organization (WTO) that it reserves the right to impose retaliatory tariffs on US imports. The US team is expected to visit India again later this month.
This move comes after the U.S. has concluded trade deals with the U.K., Indonesia, the Philippines, Japan, the EU, and South Korea. Whether this recent development will derail future negotiations with India remains to be seen, but it certainly marks a significant setback for Indo-US trade relations.
First Piper 