These customs or import duties will come into effect from August 7. Till then, a 10 per cent duty (announced on April 2) applies to all goods.

US President Donald Trump has announced the latest reciprocal tariff rates for trading partners as the August 1 deadline came to an end on Friday. 

The White House stuck to the 25 per cent tariff on India, but there is still no clarity on the quantum of "additional penalties" that Trump had threatened to impose on 

New Delhi for purchasing crude oil and military equipment from Russia. The penalties, if enforced, could erode India's export competitiveness significantly.

These customs or import duties will come into effect from August 7. Till then, a 10 per cent duty (announced on April 2) applies to all imports.

The new tariff rate will apply until any trade deal is finalised between the two nations. With negotiations set to resume in mid-August, markets expect the final tariff rate to be lower than 25 per cent. 

But until clarity emerges, export-linked sectors face significant near-term headwinds.

Why Trump Tariff Matters To India

America was India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at USD 186 billion (USD 86.5 billion exports and USD 45.3 billion imports). 

Source: Ndtv