Trump’s trade war heats up as India to pay world’s highest tariffs in 21 days; Check 20 such countries targeted by Trump’s tariff policy

The United States is one of India’s largest export markets, accounting for nearly 18 per cent of India’s total exports. With higher tariffs, the prices of Indian goods in the U.S. will go up, making them less competitive.

US President Donald Trump has been making headlines with his tough trade policy. He announced high tariffs on many countries. Earlier, he had said India would face a 25 per cent tariff, but now he has increased it by another 25 per cent. This means, starting August 27, 2025, India could be paying up to 50 per cent in tariffs, one of the highest rates in the world.

What is Trump’s tariff policy?

From the start of his second term, Donald Trump has pushed the “America First” policy more strongly. He believes that many countries take unfair advantage of the US by putting high taxes (tariffs) on American goods. To fight this, Trump introduced the idea of “reciprocal tariffs.” This means the US will charge the same amount of tariff that other countries charge on American products.

Trump declared April 2, 2025, as “Liberation Day” and started a global tariff war. Under this policy, the US has announced tariffs between 10 per cent and 50 per cent on goods from over 180 countries.

At first, Trump planned a 26 per cent tariff on India, which was later fixed at 25 per cent. But now, because India continues to buy oil from Russia, Trump has threatened to punish India with even higher tariffs. This has made the situation even more difficult for India.

Trump’s new tariff threat to India

On August 5, during an interview on CNBC’s Squawk Box, former US President Donald Trump sharply criticized India. He said, “India puts the highest tariffs in the world. We don’t trade much with them because their tariffs are too high. We had agreed on a 25 per cent tariff, but now I’m going to increase it in the next 24 hours because they’re buying oil from Russia.”

Just a day later, on August 6, Trump officially announced an additional 25 per cent tariff on Indian goods, raising the total tariff to 50 per cent. This new rate will come into effect 21 days later, on August 27, 2025.

Top 20 countries targeted by Trump’s tariff policy

Donald Trump’s tough new tariff policy has impacted many countries. Below is a list of the top 20 countries that are either facing the highest tariffs or additional penalties under his plan:

• India – 50 per cent Tariff
• Brazil – 50 per cent
• Canada – 35 per cent
• China – 30 per cent
• Mexico – 25 per cent
• European Union – 15 per cent
• Syria – 41 per cent
• Laos – 40 per cent
• Myanmar – 40 per cent
• Switzerland – 39 per cent
• Iraq – 35 per cent
• Serbia – 35 per cent
• Algeria – 30 per cent
• Bosnia and Herzegovina – 30 per cent
• Libya – 30 per cent
• South Africa – 30 per cent
• Brunei – 25 per cent
• Kazakhstan – 25 per cent
• Bangladesh – 20 per cent
• Pakistan – 19 per cent

Impact of Tariffs on India

The United States is one of India’s largest export markets, accounting for nearly 18 per cent of India’s total exports. With higher tariffs, the prices of Indian goods in the U.S. will go up, making them less competitive.

Key sectors likely to suffer include:

• Pharmaceuticals
• Textiles
• Marine products

India exports over USD 12 billion worth of medicines to the U.S. every year. With the tariff hike, these affordable Indian drugs may become more expensive for American buyers.

According to government sources, the earlier 25 per cent tariff alone could shrink India’s GDP by around 0.2 per cent. Now, with the tariff doubled to 50 per cent, the economic impact could be even worse.

In response to Trump’s tariff threat, India has taken a strong stand. Commerce Minister Piyush Goyal told Parliament, “We will take every necessary step to protect our national interests.”

India also pointed out that the U.S. itself trades with Russia, so targeting India for the same is unfair.

<!–

–>