What Does Trump's Latest Tariff Decision Mean for India?

India Excluded from Recent US Tariff Letters

New Delhi: In a recent development, India has not been included in the list of nations receiving tariff letters from the Trump administration, which were issued on Wednesday. This news comes as a relief for Indian exporters, especially as both nations are in the midst of negotiating a trade agreement.

So far, the US has sent tariff letters to approximately 20 countries. On Wednesday, President Donald Trump dispatched letters to six trading partners and indicated that more announcements regarding import taxes would follow later that evening.

Earlier this week, the Trump administration had sent out the first batch of letters to 14 countries, outlining the tariffs that would be applied to their products entering the US market starting August 1.

Countries such as Bangladesh, Indonesia, Japan, South Korea, Malaysia, Thailand, South Africa, Bosnia and Herzegovina, Cambodia, Kazakhstan, Laos, Serbia, and Tunisia were among those that received these letters signed by President Trump.

On Wednesday, Libya, Iraq, Algeria (30 percent), Moldova, Brunei (25 percent), and the Philippines (20 percent) were also notified of the tariffs.

Previously, on April 2, the US had imposed an additional 26 percent reciprocal tariff on Indian goods, which was suspended for 90 days until July 9, and has now been postponed to August 1.

Despite this, the baseline tariff of 10 percent imposed by the US remains unchanged.

The US has been India's largest trading partner since 2021-22, with bilateral trade in goods reaching USD 131.84 billion during 2024-25, comprising USD 86.51 billion in exports and USD 45.33 billion in imports, resulting in a trade surplus of USD 41.18 billion.