BS EDIT: No Deal: India Faces Trade Setback Amid Trump Tariff Blow

By Business StandardPublished On Jul 31, 2025

Tariff Shock Hits

Trump’s 25% tariff on Indian goods from August 1 reignites uncertainty, ending months of speculation over a possible trade breakthrough

Talks Fall Apart

Despite early optimism and Trump’s own statements about a “big deal,” negotiations failed to yield results, leaving India exposed

Exporters at Risk

India exported $86 billion to the US in FY25. The tariff puts those flows at risk, with ripple effects on jobs, growth, and competitiveness

Investor Confidence Dents

Recent global investments aimed at de-risking from China may now stall, as Vietnam gains edge in a more tariff-friendly environment

Hard Choices for India

India’s stand on protecting agriculture may have cost market access. As peers strike deals, India must weigh development against integration

What Comes Next

If tariffs persist, growth forecasts must adjust. India needs to revisit its trade strategy and decide whether talks should quietly resume