On July 30, 2025, former U.S. President Donald Trump imposed a sweeping 25% tariff on all Indian imports, effective August 1. The move cites India’s continued trade with Russia, including oil and defense deals, as the trigger. This sudden escalation threatens key MSME-driven exports—auto parts, textiles, pharma, and more—already running on thin margins. With order cancellations and cost pressures mounting, India’s small businesses now face a brutal trade shock.