India Among Hardest Hit in Trump's Tariff Retaliation

Published on August 02, 2025
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 Among Hardest Hit in Trump's Tariff Retaliation
  • 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.
IBPS RRB Scale II GBO Course 2025

About Me

Ramandeep Singh

Ramandeep Singh

Educator & Banking Expert

I'm Ramandeep Singh, your guide to banking and insurance exams. With 14 years of experience and over 5000 successful selections, I understand the path to success firsthand, having transitioned from Dena Bank and SBI. I'm passionate about helping you achieve your banking and insurance dreams.

14+
Years Experience
5000+
Selections
Ex-BoB
Banker
Close Menu
Close Menu