Trump's 25% Tariff on Indian Goods Stirs Economic Concerns

U.S. President Donald Trump imposed an additional 25% tariff on Indian goods, citing indirect Russian oil imports. The tariffs, effective in 21 days, could significantly impact Indian exports, especially in the gems and jewellery sector. This development pressures both nations to resolve their trade tensions privately.

U.S. President Donald Trump has announced an executive order imposing a 25% tariff on goods imported from India. The decision is reportedly linked to India's indirect imports of Russian oil.

The new tariffs will take effect in 21 days, raising concerns about the competitiveness of Indian goods, particularly in sectors like gems and jewellery, compared to regional rivals Vietnam and Bangladesh.

Experts emphasize the need for U.S. and Indian officials to address their trade differences, as the tariffs could heavily impact bilateral trade and Indian GDP growth, which may drop below 6% if a resolution is not reached.

(With inputs from agencies.)