Trade deficit widens to $27.35 billion amid US tariffs row
India's trade deficit jumped to $27.35 billion in July 2025 as imports increased and exports remained steady.
This comes just after the US, under President Trump, slapped new tariffs on Indian goods, putting extra pressure on industries like garments and leather that rely heavily on exports.
US tariffs on Russian crude oil imports hit India hard
Things got tougher when the US added a 25% tariff on India's crude oil imports from Russia earlier this month.
This could potentially lead to pricier energy for everyone and adds another layer to the already tense trade relations.
Exporters likely to be worst affected
Economists are sounding the alarm—Madan Sabnavis from Bank of Baroda warned that exporters could be among the hardest hit if talks with the US don't work out soon.
The growing deficit may potentially affect jobs, growth, and prices back home if things aren't resolved quickly.