Overview

• Washington’s additional 25% levy tied to India’s Russian oil purchases took effect on August 27, lifting total US duties on many Indian goods to 50% and prompting the postponement of the sixth BTA round originally slated for August 25.
• Indian officials say both the reciprocal 25% tariff and the 25% oil penalty must be addressed to clinch a deal, though they stress negotiations are not off and engagement continued via an August 26 US–India 2+2 inter‑sessional dialogue.
• The government is advancing relief for exporters, including a faster export promotion mission, an e‑commerce export hub, emergency credit support, and loan moratoriums, with Finance Minister Nirmala Sitharaman assuring industry that assistance is coming.
• Reports indicate the Centre is exploring temporary, WTO‑calibrated compensation covering roughly 10–15% of price cuts on US‑bound consignments to help labour‑intensive sectors maintain orders while talks proceed.
• Exporters front‑loaded shipments to the US in April–July, boosting sales there by 21.6% as shipments to several other major markets contracted, while analysts warn the 50% tariff could hit tens of billions in exports, trim FY26 growth by 0.4–0.8 percentage points, and intensify pressure on textiles, leather, footwear, shrimp, and gems and jewellery, including Gujarat’s diamond polishing hub.