U.S. President Donald Trump on Thursday (July 31, 2025) introduced 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 put up on the platform Truth Social, he referred to as India’s tariffs “too high” and mentioned that it had “strenuous and obnoxious non-monetary trade barriers.”
He additionally criticised India for its fossil gasoline commerce with Russia. Mr. Trump has been making an attempt to dealer a ceasefire between Russia and Ukraine to cease the three-year ongoing battle between the 2 international locations, with no agency deal in sight but.
In this context, right here is an summary 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. had been valued over 86,000 million {dollars}, with imports being over 45,000 million {dollars}. In phrases of share, 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. embrace telecom gear, drug formulations and biologicals, textiles, petroleum, iron and metal, pearl and valuable stones and extra.
However, there are variations within the share of every of those merchandise that India exports to the U.S. in comparison with whole exports of the product to all international locations. For occasion, India sends over 63% of all telecom exports to the U.S. For petroleum merchandise, that is 7%.
India-Russia commerce
One of Mr. Trump’s criticisms is India’s commerce with Russia within the space of vitality. 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 lower down on its imports of Russian vitality after 2022.
However, India elevated its imports of Russian vitality from round 2% of whole Russian exports to over 20% in response to cheaper costs of discounted Russian oil.
In a media briefing on Friday (August 1, 2025), the Ministry of External Affairs Spokesperson Randhir Jaiswal mentioned that selections relating to the sourcing of vitality had been “based on the price at which oil is available in the international market and depending on the global situation at that time.”
Similarly, External Affairs Minister mentioned in 2023 that the nation needed to supply oil the place it was least expensive. He identified that European international locations are “diverting production out of the Middle East and raising prices.”
Besides vitality imports, India’s imports of Russian navy gear was one other of Mr. Trump’s complaints. In 2024, India imported round 40% of its navy imports from Russia. Exports to India made up 34% of Russia’s whole exports.
According to SIPRI, Russia was the highest provider to India, adopted by France and Israel in 2024. However, Indian sources informed Reuters that the nation was seeking to pivot away from Russian arms since Russia’s munitions had been depleted resulting from its battle with Ukraine. This additionally aligns with Prime Minister Narendra Modi’s ‘Make in India’ programme to spice up home manufacturing.
On navy procurement, Mr. Jaiswal mentioned sourcing was decided “solely by our national security imperatives and strategic assessments” on Friday.
(With inputs from Reuters)
