India Among Hardest Hit in Trump's Tariff Retaliation

Current Context: On 31 July 2025, President Donald John Trump of the United States (U.S.) issued an Executive Order imposing retaliatory tariffs on 68 countries and the European Union (EU), effective from 7 August 2025.

• India was hit with a 25% tariff, one of the highest in South Asia, citing “obnoxious non-monetary trade barriers” and strong ties with Russia.
• Other regional competitors like Pakistan (19%), Bangladesh (20%), and Sri Lanka (20%) faced slightly lower rates.
• Despite the blow, India has opted not to retaliate at the WTO and continues negotiating a bilateral trade agreement with the US, expected to be finalized by Fall 2025.

Question:

Q.1 What was the tariff rate imposed by the U.S. on Indian goods under the Executive Order issued on 31 July 2025?
a) 15%
b) 20%
c) 25%
d) 30%

Answer: c) India was hit with a 25% tariff—the highest among South Asian nations—due to alleged “non-monetary trade barriers” and its strong ties with Russia.