Donald Trump signs executive order for additional 25% tariff on India, escalating trade tensions and impacting key Indian export sectors.

In a major policy move, former U.S. President Donald Trump has signed an executive order to impose an additional 25% tariff on imports from India, citing reasons related to trade imbalances, intellectual property concerns, and protection of American manufacturing industries. This action marks a sharp escalation in trade tensions between the two countries and is expected to have significant repercussions on bilateral economic relations.

The executive order targets a wide range of Indian export items, including pharmaceuticals, textiles, automotive parts, and electronic goods. Trump stated that the measure is aimed at "restoring fairness" in trade and addressing what he calls a long-standing imbalance in U.S.-India trade relations.

The Indian government is expected to respond strongly, with officials already exploring retaliatory tariffs and consultations with the World Trade Organization (WTO). Industry experts have warned that this sudden hike could severely disrupt supply chains and adversely affect small and medium exporters in India who depend heavily on the American market.

This development comes at a sensitive time when global trade dynamics are already strained, and the U.S.-India relationship is seen as strategically important in countering the influence of China in the Indo-Pacific region. Economists predict that if not resolved through diplomatic dialogue, this tariff dispute could lead to prolonged economic friction between the two democracies.

The move also raises questions about Trump's broader trade policy direction should he return to office, and signals his intent to continue a hardline stance on foreign imports under the banner of "America First."