nnThe U.S. has announced 25% tariffs plus additional penalties on Indian goods starting August 1, 2025. This move is expected to negatively impact India’s export competitiveness against Vietnam and China. Economists warn it could reduce India’s GDP growth forecast from 6.5% to 6.2% this financial year. The tariffs target $87 billion in Indian exports including textiles, pharmaceuticals, and jewelry. Trade negotiations continue despite this setback to the bilateral $500 billion trade goal by 2030.