Daily News - Thursday, 31 July 2025
Trump slaps 25% tariff on India, plus a penalty for using Russian weapons & oil (The Economic Times)
Just two days before the tariff deadline, Donald Trump confirmed that a 25% duty—plus a penalty—will hit Indian exports from August 1, citing unresolved trade talks and India’s continued defense and energy ties with Russia. The US, currently running a $45.7 billion trade deficit with India, has criticised India’s high import duties (up to 50% on items like apples and corn) and non-monetary trade barriers, even as bilateral trade reached $191 billion in 2024. Despite industry concerns over the impact on exports, both sides remain engaged, with a US delegation expected in India later in August and hopes still alive for a long-term, mutually beneficial trade deal.
Who’s most at risk from Trump’s 25% India tariffs? (The Economic Times)
Trump’s 25% tariff on Indian exports from August 1 is set to impact a wide range of sectors—electronics, generic drugs, jewellery, auto parts, and textiles—potentially affecting around 10% of India’s total exports this quarter. The US, which imported $129.2 billion worth of goods from India in 2024, is a critical market for sectors like pharmaceuticals ($8B), gems & jewelry ($10B+), and electronics (India now leads in US smartphone exports), all of which now face cost inflation, shipment delays, and pricing distortion. While India hoped for preferential treatment, the blanket tariffs—triggered by trade imbalances and Russia ties—may strain supply chains, dent profits, and force firms like Apple and Reliance to rethink sourcing and refining strategies.
‘Will take all steps necessary to secure national interest’: Centre responds to 25% tariffs, penalty imposed by Trump (Financial Express)
Just two days before the tariff deadline, former US President Donald Trump confirmed that Indian exports will face a 25% tariff plus penalties starting August 1, 2025, citing unresolved trade talks and India’s defense and energy ties with Russia. The Indian government responded by reaffirming its commitment to a balanced trade deal while emphasizing that it will take all necessary steps to protect its national interest—particularly its farmers, MSMEs, and strategic sectors—amid a $45.7 billion trade deficit with the US. Despite the setback, trade talks remain ongoing, with both sides expected to meet later in August, and hopes remain high for a long-term agreement that safeguards India’s economic priorities.
Solar cell capacity may reach 42 GW by 2026 (Financial Express)
India’s solar cell manufacturing capacity is set to rise from 27 GW to 42 GW by June 2026, driven by domestic players like Gensol, Waaree, Adani Solar, and Tata Power Renewables, with the government ready to publish its Approved List of Models and Manufacturers (ALMM) for solar cells. To ease project execution, the government has amended ALMM rules—allowing certain projects to bypass cell sourcing restrictions until the new list takes effect—while also planning similar standards for wafers and polysilicon, where current local capacity is just 2.2 GW. Meanwhile, exports are shifting focus to the US and West Asia, as the price gap between Chinese and Indian modules narrows significantly—from 42 cents to just 7–8 cents—making domestic modules more competitive.
India retains tariff-free access for electronics in US (Financial Express)
Starting August 1, the US will continue duty-free imports of smartphones, laptops, and servers from India despite introducing 25% reciprocal tariffs, giving Indian electronics exporters a key edge as they remain exempt amid an ongoing Section 232 national security investigation. India has already emerged as the top smartphone exporter to the US in the June quarter, capturing 44% of total imports in the segment, surpassing China and Vietnam. With Indian iPhones costing just $30 to assemble (versus $390 in the US), the country’s cost advantage and supply chain integration are expected to keep it well-positioned, even if tariffs are revised in the future.
