Donald Trump Slams Fed Chair, Imposes New Tariffs on India Amid Rising US-India Trade Tensions
Donald Trump imposes 25% tariff on India, criticizes Fed Chair Powell. US-India trade hits $186B; GTRI claims actual US surplus of $35–40B.
Former US President Donald Trump announces new tariffs on India, sparking global trade concerns amid Fed rate controversy.
Former US President Donald Trump has once again stirred global markets by launching a scathing attack on Federal Reserve Chairman Jerome Powell and announcing a steep 25% tariff on Indian imports. The move has triggered concerns over the future of US-India trade relations, which have seen record growth in recent years.
Trump Criticizes Fed’s Decision
Trump lashed out at Powell, calling him “stupid” for the Fed’s latest rate decision. The outburst, delivered via social media, comes amid growing economic uncertainty and rising inflation concerns in the United States. Trump has long been critical of Powell, accusing him of hindering economic growth through mismanaged monetary policy.
New 25% Tariff on Indian Goods
In a surprise policy move, Trump also imposed a fresh 25% tariff on Indian imports. Though specific product categories haven’t been disclosed yet, analysts warn that the move could disrupt key sectors like textiles, pharmaceuticals, and IT services.
The announcement has already sparked apprehension in Indian industry circles, with businesses anticipating increased export costs and supply chain challenges.
US-India Bilateral Trade Snapshot
Between 2021 and 2025, the United States has consistently ranked as India’s largest trading partner in goods. In the financial year 2024-25 alone, bilateral trade reached $186 billion.
- India’s exports to the US: $86.5 billion
- India’s imports from the US: $45.3 billion
- India’s trade surplus in goods: $41 billion
- Total trade surplus (including services): $44.4 billion
Think Tank Offers Different View
Despite India’s visible trade surplus in goods and services, a report by the Global Trade Research Initiative (GTRI) presents a contrasting analysis. According to GTRI, when including education, digital services, financial transactions, royalties, and arms sales, the US may actually hold a surplus of $35–40 billion in its overall economic engagement with India.
What Lies Ahead?
Trump's tariff decision could significantly reshape the landscape of US-India trade, just as relations between the two nations have been deepening. With the upcoming US elections and global economic instability in play, the full impact of this decision will unfold over the coming weeks.
