Trump Poised to Announce “Substantial” Tariff Increase on India Within 24 Hours

Trump Poised to Announce “Substantial” Tariff Increase on India Within 24 Hours

The impending announcement marks a critical moment for US-India trade, with market observers awaiting the specific details of the proposed “substantial” increase.

RMN News Trade Desk
August 5, 2025

Washington D.C. – U.S. President Donald Trump has indicated that his administration is likely to announce a substantial increase in tariffs on Indian imports within the next 24 hours. This announcement follows closely on the heels of the recent imposition of a 25 percent tariff on all Indian imports into the United States.

Speaking in an exclusive interview with CNBC on Tuesday (August 5), President Trump stated, “We settled on 25% for India, but I think I am going to raise that substantially within the next 24 hours”. This declaration signals a significant escalation in the trade dispute between the two nations and could further impact trade relations between the United States and India. The current tariffs are set at 25 percent.

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The potential tariff hike comes just days after the initial 25% tariffs were implemented. In response to such protectionist measures, various reactions have emerged:

• Indian textile traders have suggested that Free Trade Agreements (FTAs) could help offset the blow from US tariffs.
• India has also highlighted a perceived double standard, noting that the ‘US itself trades with Russia,’ potentially exposing what India sees as hypocrisy in Trump’s stance.
• Russia, for its part, has criticized Trump’s tariffs as ‘a neocolonial agenda’.
• Despite these looming tariffs, some reports indicate that Donald Trump’s tariffs are not deterring India’s new businesses.
• Additionally, it has been suggested that US tariffs may not impact India’s oil ties with Russia.

The impending announcement marks a critical moment for US-India trade, with market observers awaiting the specific details of the proposed “substantial” increase.