As Donald Trump re-emerges in global headlines ahead of the U.S. elections, one word dominates economic discourse—tariff. Once again, Trump tariffs on India are sparking debate among policymakers, economists, and business leaders across the globe.
In this article, we decode what Trump’s tariff strategy could mean for the India-US trade deal, how it might impact Indian exports, the response from industry bodies like FICCI, and what it signals for the global economic landscape in 2025.
Dickhead Jerome Powell saying that Trump’s tariffs will increase inflation is a crock of bullshit!
— Mike Engleman🇺🇲 (@RealHickory) July 30, 2025
It's his not lowering interest rates policy that will drive up inflation! Fire this dickhead and end the Fed! pic.twitter.com/Qtw39vzC4T
What Is a Tariff?
A tariff is essentially a tax imposed by one country on the goods and services imported from another. Tariffs are used to:
- Protect domestic industries
- Raise government revenue
- Leverage trade negotiations
In Trump’s previous term, tariffs were a key tool in his “America First” policy—targeting China, the EU, and even India.
Trump’s Tariff History with India
In 2018–2019, Donald Trump imposed tariffs on Indian steel and aluminum, citing unfair trade practices. India retaliated with counter-tariffs on American goods such as almonds and apples.
The tension escalated further when the U.S. withdrew India’s GSP (Generalized System of Preferences) in 2019, affecting nearly $5.6 billion worth of Indian exports.
If Trump returns to power in 2025, there’s growing speculation that his tariff policy on India might be reintroduced—especially on high-growth sectors like tech, pharma, and textiles.
India’s Response & FICCI’s Position
India has consistently argued that tariffs hurt both economies and disrupt long-standing trade relationships. FICCI (Federation of Indian Chambers of Commerce & Industry) has issued multiple statements urging balanced trade ties.
“Trade should be a bridge, not a barrier. Strategic tariffs only result in higher prices and uncertainty,” — FICCI President
India is pushing for a comprehensive US-India trade deal, hoping to eliminate unfair tariffs and promote smoother investment flows.
Apple, Upstox & Market Impact
Global companies are watching closely. Apple, which relies heavily on Indian manufacturing and exports, could face cost increases. Financial platforms like Upstox and global indices like Gift Nifty may also experience volatility due to changing tariff policies.
Markets are already reacting. Analysts from The Economic Times note that any signal of a renewed Trump tariff could trigger immediate shifts in investor sentiment—especially in the FMCG, IT, and pharma sectors.
What Lies Ahead in the US-India Trade Deal?
Negotiations are reportedly ongoing to revive the US-India trade deal that ensures lower tariff barriers, especially in the tech and services sector. The Biden administration had made progress, but Trump’s possible comeback may rewrite those terms.
India is pushing for:
- Restoration of GSP benefits
- Fairer treatment for pharma exports
- Lower duties on textiles, gems, and jewelry
Meanwhile, Trump’s camp hints at reviewing all bilateral agreements to favor American workers—a strategy aligned with his MAGA (Make America Great Again) policy..
Conclusion: Will Tariffs Define Trump’s Second Term?
As we inch closer to the U.S. elections, the question remains—Will Donald Trump reimpose 25% tariffs on India? While some see it as a strategic move to level the playing field, others warn it could derail years of diplomatic and economic progress.
India must prepare for both scenarios: building stronger domestic resilience while negotiating smartly on the global stage.
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