Looming Tariffs
US to 'substantially' hike tariffs on India in next 24 hours, Trump tells CNBC
This story was originally published at 18:46 IST on 5 August 2025
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--CNBC: US Trump: May raise tariffs on India "substantially"
--CONTEXT: US President Donald Trump's comments in an interview with CNBC
--CNBC: US Trump: Want India to offer least tariff under trade deal
--CNBC: US Trump:India has not been a good trading partner, tariff too high
--CNBC: US Trump: To "substantially" raise tariffs on India in next 24 hrs
NEW DELHI – Doubling down on his threat to "substantially" raise tariffs on Indian goods, US President Donald Trump Tuesday said he may announce this within the next 24 hours. Trump has already announced 25% tariff on imports from India, effective Thursday.
"I think I am gonna raise that (25% tariff on India) substantially because they are buying Russian oil, they are fuelling the war machine," Trump said in an interview with CNBC. "We do very, very little business with India because their tariff is very high. India has not been a good trading partner," Trump said.
Trump's comments on raising tariffs on Indian goods came at a time when the Indian industry is already bracing for impact from the 25% US tariffs. Exporters have also been pinning their hopes on a potential trade deal to mitigate the impact of the tariffs announced by the top export destination.
Meanwhile, Trump wants India to offer least-to-zero tariffs on American goods under the proposed trade deal, he said. The next round of negotiations for the trade deal between India and the US is scheduled to begin from Aug. 25 in New Delhi. The two sides have held five rounds of negotiations so far.
The higher tariffs on Indian goods may significantly hurt India's growth in exports to the US, which comprise nearly one-fifth of the country's total outbound shipment. India had exported goods worth $86.51 billion to the US in 2024-25 (Apr-Mar) and had a trade surplus of $40.82 billion during the period, according to commerce ministry data.
During the interview, Trump also mentioned he would announce sector-wise tariff on import of semiconductor chips and pharmaceuticals into the US next week. The US administration is likely to start small with pharma tariffs and take the duty to 150% and then to 250%, Trump said. Washington has already imposed sector-wise tariff on the import of steel and aluminium, and auto components. End
US$1 = INR 87.80
Compiled by Krity Ambey
Filed by Tanima Banerjee
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