- Trump imposes a 25% tariff on Indian exports from August 1, citing high trade barriers and ties with Russia.
- Tariffs target $87B in exports, hitting key sectors like textiles, pharma, petrochemicals, and jewelry.
- Crypto market falls 4% on tariff news; India still leads global adoption with 107M users and rising growth.
U.S. President Donald Trump announced on Truth Social today that India will be charged a 25% tariff on its exports to the U.S. beginning August 1. Additionally, India will receive an unspecified penalty for buying military material and energy sources from Russia.
The tariffs would be directed towards Indian goods exports, which stood at $87 billion in 2024. The most important of these sectors are textile, pharmaceuticals, gems, jewels and petrochemicals. These are labour-intensive sectors that form the core of the Indian export economy.
The US official data shows that the U.S. incurred a trade deficit of $45.7 billion with India last year. Trump announces renewed tariff threats made earlier in April. The two countries are still stuck in trade negotiations. The Ministry of Commerce in India has not responded.
Trump posted on Truth Social: Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country.”
Source: Flickr
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Trump Tariff Sparks Crypto Decline
The announcement affected the markets all over the world. The news caused the cryptocurrency market to fall by around 4%. Bitcoin and Ethereum were at the forefront of losses. Analysts attributed this to increased uncertainty and inflation terror.
Although cryptocurrency has declined, certain people believe it will bounce back quicker than traditional assets. They believe digital currencies can be an insurance against a falling dollar. Investors are usually attracted to decentralized options due to economic tension.
India has become one of the fastest-growing crypto markets in the world, with an adoption rate of more than 107 million users, or approximately 7% of the population. As per Statista, crypto revenue in India will also reach $9.7 billion this year and $10 billion by 2026.
COINS Act 2025 Aims to Reshape Crypto
Nevertheless, regulation in India is uncertain. The crypto industry does not have clear legal regulation. However, a new bill, the COINS Act 2025, aims to transform that. The bill is aimed at eliminating the 30% tax on crypto incomes.
It also provides security of self-custody rights. Compliance would be watched by a new agency, the Crypto Asset Regulatory Authority (CARA). Lawmakers hope this will facilitate the legitimization of the industry.
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