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Business Standard
|July 31, 2025
US tariff has increased uncertainty
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The prolonged discussions had raised fears that India and the United States (US) may not be able to reach a mutually beneficial trade deal before the August 1 deadline. US President Donald Trump on Wednesday announced India would pay a 25 per cent tariff on exports to America from August 1. Aside from the headline tariff rate, Mr Trump's overall message, posted on Truth Social, was not encouraging. In addition to his usual stance that India has high tariffs and the US has done relatively less business here, he mixed up the issue with India's oil imports from Russia. The message noted that India would have to pay a penalty. Although it was not immediately clear what a penalty would mean, it could be additional tariffs over and above the 25 per cent announced.
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