(MENAFN- Kashmir Observer) New Delhi: India will face a 25% tariff on its exports to the US after President Donald Trump issued an executive order listing new duties Washington will impose on exports from various countries. The order, titled“Further Modifying the Reciprocal Tariff Rates,” outlines tariff rates for nearly 70 nations.

According to the order, a 25%“Reciprocal Tariff, Adjusted” has been imposed on India. However, it does not mention the“penalty” Trump previously said India would face over its purchases of Russian military equipment and energy. Notably, Pakistan's tariff rate was reduced from 29% to 19%.

On Wednesday, Trump confirmed the 25% tariff on India via a post on his social media platform, Truth Social, where he also reiterated an additional penalty linked to New Delhi's purchases from Russia. While August 1 marked the tariff deadline, the new levies will take effect from August 7.

Back in April, Trump had announced a 26%“discounted reciprocal tariff” for India-1% higher than the rate now being imposed.

Wendy Cutler, Senior Vice President of the Asia Society Policy Institute (ASPI) and former Deputy US Trade Representative, stated that India, once seen as a“promising candidate for an early agreement,” was now assigned a 25% tariff.

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“This casts doubt on the fate of a bilateral trade agreement. The President's frustration with India on trade and broader issues was evident in his Truth Social post,” Cutler remarked.

Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), said the order includes some relief for exporters. Goods in transit and those loaded on ships bound for the US by August 7 are exempt. Additionally, products cleared for US consumption by October 5 will not be subject to the new tariffs.

Cutler also noted the logistical challenges US customs will face due to the varying tariffs now imposed worldwide. The seven-day buffer before implementation may help, but importers and businesses should expect initial disruptions.

“US companies will also struggle to navigate this complex new tariff regime, especially amid ongoing uncertainties around additional sectoral tariffs and the risk of more penalties for countries not seen as cooperating fully,” she said.

Trump explained in the executive order that some trade partners have made or are nearing meaningful trade and security commitments with the US. Others, he claimed, have not addressed trade imbalances or aligned on key economic and security matters, warranting continued tariffs.

The order states that new tariffs will apply to goods entered for consumption-or withdrawn from warehouses-starting 12:01 a.m. EDT, seven days after the order's issue date. Tariffs range from 10% to 40%: Japan (15%), Laos and Myanmar (40%), Pakistan (19%), Sri Lanka (20%), and the United Kingdom (10%).

Citing a“massive trade deficit” with India, Trump said,“While India is our friend, their tariffs are too high-among the highest in the world-and they enforce some of the most strenuous and obnoxious non-monetary trade barriers globally.”

He also criticized India's military and energy ties with Russia, stating:“They buy most of their military equipment from Russia and are among the largest buyers of Russian energy-alongside China-at a time when the world wants Russia to stop the killing in Ukraine. All of this is not good!”

He continued,“India will therefore be subject to a 25% tariff, plus a penalty, starting August 1.”

Trump further attacked the India-Russia relationship, saying,“I don't care what India does with Russia. They can take their dead economies down together, for all I care.”

He added:“We have done very little business with India. Their tariffs are too high-among the highest in the world. Likewise, Russia and the US do almost no business together. Let's keep it that way.”

Referring to former Russian President Dmitry Medvedev, Trump said,“Tell Medvedev, the failed former President of Russia, who thinks he's still President, to watch his words. He's entering very dangerous territory!”

India responded by saying it would take all necessary steps to safeguard national interests and is examining the implications of the tariffs.

Trump also referenced India's membership in BRICS (Brazil, Russia, India, China, and South Africa), calling it an anti-US bloc.

At a White House event Wednesday, Trump was asked about the penalty related to India's Russian purchases. He replied,“We're negotiating. But yes, BRICS is a factor. It's essentially anti-US, and India is a member-if you can believe it. It's an attack on the dollar, and we're not going to let that happen.”

He stated that the tariffs on India stem from both its trade deficit and BRICS affiliation.

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