Overview

• On August 6, President Trump signed an executive order raising reciprocal duties on Indian goods from 25% to 50%, explicitly tying the increase to India’s continued Russian oil imports.
• India’s foreign ministry called the extra tariffs “unfair, unjustified and unreasonable,” and Prime Minister Narendra Modi vowed to defend farmers even at the cost of his own political capital.
• Exporters led by the Federation of Indian Export Organisations warn the 50% levy will impose a 30–35% competitive disadvantage and render many orders economically non-viable.
• The government is finalizing a ₹20,000 crore export promotion mission focused on trade finance, e-commerce hubs and streamlined facilitation to support affected exporters.
• A sixth round of bilateral trade negotiations is scheduled for late August as both sides attempt to bridge differences over agriculture, dairy market access and energy ties with Russia.