US President Donald Trump has announced a 25% tariff on Indian imports starting August 1, targeting India’s growing trade surplus with the US, which hit $41.18 billion in FY2025.

Experts warn that key sectors like electronics, pharma, textiles, and jewellery will face significant losses.

Trump cited high Indian tariffs, non-monetary trade barriers, and India-Russia ties as reasons.

Economist Garima Kapoor noted that such tariffs will hurt India if competing nations like Vietnam and Indonesia face lower duties.

Top affected exports include smartphones ($3B), refined fuels ($20B), jewellery ($8.5B), pharma ($7.5B), and textiles ($2.5B).

The move poses a major challenge to India's export-driven sectors, with responses from the Indian government and trade bodies awaited.