Trump’s 2025–2026 Tariffs and Their Impact on India: A Complete Market Analysis
President Donald Trump’s return to the WHITE House in January 2025 marked the beginning of one of the most disruptive phases in U.S. trade policy. His administration introduced sweeping reciprocal tariffs, escalating duties on Indian goods to as high as 50% by mid-2025. These measures reshaped India’s export competitiveness, currency stability, and trading conditions across multiple markets.
According to iFOREX’s February 2026 analysis, Trump’s revised tariff structure imposed 50% duties on key Indian exports, triggering heightened volatility in USD/INR and driving the rupee to historic lows NEAR ₹89.95 per USD in late 2025. Forex markets reacted sharply, with intraday volatility spiking on each tariff announcement and diplomatic update.
The tariff escalation began on April 2, 2025, when the U.S. announced a 26% duty on Indian goods as part of an "America First" initiative to reduce the trade deficit. Negotiations stalled, and by July 2025, Indian exports faced a 25% baseline tariff plus a 25% penalty tariff for India’s continued import of Russian crude, totaling ~50% on several categories.
