Just a day before the August 1 deadline for new trade agreements, former US President Donald Trump made a surprise announcement targeting India with a 25%t tariff plus an unspecified penalty.
In a post dated July 30, 2025, Trump blamed India’s long-standing protectionist policies. He claimed these policies have limited trade between the two countries for years.
While Trump did not explain what the extra “penalty” would involve, the 25% tariff alone is enough to worry Indian exporters.
Speaking to The Times of India, M Rafeeque Ahmed, who heads Farida Group, one of India’s largest leather and footwear exporters, said the timing of the news is particularly troubling. Mr Ahmed had been preparing for a US visit to close major orders but is now rethinking the trip.
“The announcement is shocking and there is a lot of uncertainty. With a 5% point disadvantage compared to Vietnam, things are not looking very good. We have to see what we can do as there may be some cancellations and price renegotiation”
M Rafeeque Ahmed, Chairman, Farida Group
India already faces tough competition in sectors like footwear and leather goods from countries such as Vietnam which enjoy trade advantages. The new tariff could make Indian products more expensive and less attractive to American buyers.
The announcement adds fresh tension to India-US trade relations at a time when many exporters were celebrating the recent India-UK CETA deal.
Source – Times of India & Others
