US President Donald Trump has announced a 25% additional tariff on India on Tuesday, August 6. Now the total American tariff on India has increased to 50%. Trump has imposed this tariff to target the purchase of energy and weapons from Russia by India. Let us know which areas will be immediately affected by Trump’s tariff and which will be safe at the moment.
Who will be affected, who will be safe
Trump’s new tariff can immediately affect India’s labor-dominated exports to the US. Such as India’s clothes, apparel, gems and jewelery, handicrafts, leather products, seafood processing sector. However, about $ 30 billion exports will currently be free from high charges as they are in the US discount list. These include medicines, some electronic products such as smartphones and semiconductor and energy.
Petroleum export also protected from Trump’s tariff
In FY 2025, India exported medicines worth $ 10.5 billion to the US and pharmaceuticals and electronic products (mainly smartphones) worth $ 14.6 billion. Both these categories together accounts for about 29% of India’s total exports to America. India’s total exports to the US stood at $ 86.51 billion in FY 2025. Ironically, India’s petroleum exports are also safe from Trump’s new tariff as energy products are included in the discount list. Its value was $ 4.09 billion in FY 2025. Trump has expressed displeasure over India’s purchase of petroleum products from Russia. They allege that India makes profits by selling Russian oil. Categories such as pharma, electronic and petroleum products were also out of 25% tariffs declared on July 30 earlier.
The danger may increase in future
However, the threats associated with Trump’s tariff are not over yet. President Trump has threatened to impose tariffs up to 250% on foreign drugs. In addition, categories like smartphones can be removed from the discount list at any time. This will depend entirely on the unexpected decisions of the administration. In an executive order issued on 6 August, the US clarified that the categories that are exempted from mutual tariffs will currently continue to enter US markets at zero or low fees.
When will Trump’s tariff apply
Trump first imposed a 25% tariff when a conversation on a small business agreement to escape the mutual tariffs between India and the US failed. This tariff will be applicable from August 7. The two countries are trying to finalize a bilateral trade agreement (BTA) by September-October this year to reduce trade tension and resolve tariff disputes.
