Overview

• President Trump signed an executive order on August 6 to double US duties on Indian goods to 50%, with the increase set to take effect in late August after six unproductive rounds of talks.
• Congress president Mallikarjun Kharge branded the tariffs a “foreign policy disaster” for Prime Minister Modi and said they would saddle India with a ₹3.75 lakh crore economic burden.
• Key sectors including agriculture, MSMEs, pharmaceuticals and textiles face the steepest costs as Washington targets India’s strategic autonomy over its energy ties to Russia.
• Prime Minister Modi defended his refusal to relent, stating that protecting farmers’ interests justified bearing the heavy economic price of US trade penalties.
• The move is part of a broader US policy to impose reciprocal tariffs on partners that maintain high import duties or strategic relationships deemed contrary to American interests.