Overview

• Washington’s doubled duties tied to India’s Russian oil purchases took effect on August 27, lifting many levies to 50% on labor‑intensive goods such as textiles, gems, footwear and seafood.
• The sixth round of trade talks was postponed, but officials say informal channels remain active; India has no immediate retaliation planned and a deal is unlikely until the extra duties are withdrawn.
• Commerce Minister Piyush Goyal vowed India would not bow down, promising measures in the coming days to support exporters and pursuing diversification through FTAs, including progress with Oman and outreach to Qatar, Saudi Arabia and the EU.
• Exporters report canceled U.S. orders and halted production, with industry groups warning of layoffs and estimates that roughly two‑thirds of India’s U.S. merchandise shipments now face the top rate.
• Financial and strategic ripples are emerging as the rupee hits a record low, U.S. officials defend the tariffs with sharp rhetoric, and former NSA Jake Sullivan warns the move could push India to hedge toward China.