Overview

• The initial 25% tariff on Indian goods took effect August 7 and an additional 25% levy will begin on August 27 under Trump’s executive order.
• The White House justified the move by accusing India of funding Russia’s war in Ukraine through continued purchases of discounted Russian crude.
• India’s Ministry of External Affairs called the heightened duties “unfair, unjustified and unreasonable” and vowed to safeguard the country’s economic security.
• Industry representatives warn that about 55% of India’s shipments to the US—including textiles, gems, leather and pharmaceuticals—will face the steep new rate.
• American trade negotiators are scheduled to hold the sixth round of bilateral talks in New Delhi from August 25 to 30 to seek a deal by October and prevent deeper trade disruptions.