Prime Minister Narendra Modi and US President Donald Trump ship a joint press assertion after their assembly on the White Home, in Washington, DC on Feb. 13, 2025.
| Picture Credit score: ANI
U.S. President Donald Trump on Thursday (July 31, 2025) announced 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 Fact Social, he known as India’s tariffs “too excessive” and mentioned that it had “strenuous and obnoxious non-monetary commerce limitations.”
He additionally criticised India for its fossil gas commerce with Russia. Mr. Trump has been making an attempt to dealer a ceasefire between Russia and Ukraine to cease the three-year ongoing conflict between the 2 international locations, with no agency deal in sight but.
On this context, right here is an outline 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}. When it comes to 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 treasured stones and extra.
Nonetheless, 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 international locations. For example, India sends over 63% of all telecom exports to the U.S. For petroleum merchandise, that is 7%.
It’s to be famous that the 25% tariff rule doesn’t embody some merchandise like prescribed drugs, electronics and ICT items, and petroleum merchandise.
India-Russia commerce
One in every of Mr. Trump’s criticisms is India’s commerce with Russia within the space of power. As a part of its opposition to Russia’s actions in Ukraine, the European Union together with different Western international locations imposed sanctions on Russian items and people, and reduce down on its imports of Russian power after 2022.
Nonetheless, India elevated its imports of Russian power from round 2% of complete Russian exports to over 20% in response to cheaper prices of discounted Russian oil.
In a media briefing on Friday (August 1, 2025), the Ministry of Exterior Affairs Spokesperson Randhir Jaiswal mentioned that choices concerning the sourcing of power have been “primarily based on the worth at which oil is out there within the worldwide market and relying on the worldwide state of affairs at the moment.”
Equally, Exterior Affairs Minister said in 2023 that the nation needed to supply oil the place it was most cost-effective. He identified that European international locations are “diverting manufacturing out of the Center East and elevating costs.”
In addition to power imports, India’s imports of Russian army gear was one other of Mr. Trump’s complaints. In 2024, India imported round 40% of its army imports from Russia. Exports to India made up 34% of Russia’s complete exports.
In line with SIPRI, Russia was the highest provider to India, adopted by France and Israel in 2024. Nonetheless, Indian sources advised Reuters that the nation was looking to pivot away from Russian arms since Russia’s munitions have been depleted resulting from its conflict with Ukraine. This additionally aligns with Prime Minister Narendra Modi’s ‘Make in India’ programme to spice up home manufacturing.
On army procurement, Mr. Jaiswal mentioned sourcing was decided “solely by our nationwide safety imperatives and strategic assessments” on Friday.
(With inputs from Reuters)
Printed – August 02, 2025 11:15 am IST
