EU leaders respond to Trump’s tariffs, trade contracts
European Union leaders have responded to President Donald Trump’s 15% tariffs and a $600 million US investment contract, warning of a new trade order.
President Donald Trump announced that he would impose a 25% tariff on Indian goods starting August 1, as the US’s months of negotiations over a limited trade agreement between the two countries appears to have collapsed.
Trump announced the new tariffs on July 30 in a post on social media app Strue Social.
India, the world’s fifth largest economy, is heavily dependent on the US and counts it as its top trading partner in 2024, but China is approaching the heels with a small margin.
Exports of Indian goods to the US totaled $87 billion in 2024, followed by pharmaceuticals and jewelry, with its top product types, followed by petrochemicals and textiles. Apart from that, exports of mainly IT, professional services and professional services were worth $33 billion last year.
The US is India’s third largest investor and currently has a trade deficit of $45.7 billion with South Asian countries.
According to data from the US International Trade Commission, some of the products the US relies on most of India are:
Pharmaceuticals
The US accounts for almost a third of India’s drug exports. Cheap versions of mostly popular drugs have been reported, reaching around $9 billion in fiscal year last year from 16%.
Of the dozens of drugs the US imports from India, several categories make up a significant share. They are items like wading, gauze and bandages. Antitumor and immunosuppressant drugs, including those used to treat cancer. Painful drugs, antipyretics, non-hormonal anti-inflammatory drugs, and other painkillers and drugs used to reduce fever.
Smartphone
China and Vietnam were responsible for more than half of the calls sent to the US last year, but India also appears to have generated a large share and gained a more stiff foothold in the market.
India has surpassed China in the past few months, following its centre manufacturing in New Delhi amid Apple’s tariff concerns, according to a new report. The share of US smartphone shipments assembled in China has dropped from 61% to 25% over the past year, researcher Canalys said India has gained most of the decline, increasing the volume of smartphones by 240% within the same time frame.
Jewels and Jewels
The gems and gems next to the medicine are one of India’s top products exported to American consumers. Over 30% of India’s gem and gem exports have been sent to the US, with annual trade accounting for around $10 billion in industry, which exceeded $30 billion in fiscal year 2023/2024.
These items include precious metallic gems, such as unmounted or unsetted diamonds, precious metallic gems, and fragments decorated with gold or silver.
Home Linen
According to an analysis of government data, India is one of the countries responsible for imported home linens in the US, accounting for 36% of nearly $6 billion in imports.
These products include bathroom and kitchen linens, beds and table linens made of terry cloth or cotton.
India is also a leader in several types of imported clothing, including activewear, shirts, baby clothes, and suits. According to Yale Budget Lab, previous tariff hikes have disproportionately affected clothing and fabrics, with consumers facing up to 39% shoe prices and 37% apparel prices in the short term.
Other products
The US also relies on Indian imports of frozen shrimp and shrimp, petroleum oils such as transformer oil and motor fuels, semiconductor technologies such as solar panels, and certain types of electrical machines and components.
Contribution: Reuters.
Kathryn Palmer is a national trending news reporter for USA Today. You can contact her kapalmer@usatoday.com And with x @Kathrynplmr.
