India’s trade deficit also swelled from $22.56 billion in 2025 to $28.21 billion in May 2026. While goods exports increased by 18% to $45.2 billion from $38.3 billion in May 2025, imports also surged by 20.62% to $73.41 billion.
Donald Trump claimed India would be paying a 25% tariff on exports to the US, but that's misleading. In reality, US importers pay the tariff, often passing the cost to consumers through higher prices
The recent decision to ban imports will intensify the economic retaliation against the hostile neighbouring country. The decisive move covers both direct shipments and goods routed through other countries.
The US President signed an executive order to delay 25% tariffs on Canadian and Mexican goods covered under the North American Trade Agreement dismissing any links to market turbulence.
Billionaire investor Warren Buffet has described Trump's tariffs as ' an act of war'. "Tariffs are actually-we've had a lot of experience with them-they're an act of war, to some degree," said Buffet. He said that tariffs are ultimately paid by consumers who purchase taxed goods. "The Tooth Fairy doesn't pay'em, " he added.