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3w ago

Trump Slaps 25% Tariffs on Indian Imports Over Russia Ties

Taking effect Friday, the tariffs knocked the rupee to a five-month low, prompting India’s commerce ministry to vow protection for farmers and MSMEs.

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U.S. President Donald Trump and Indian Prime Minister Narendra Modi shake hands as they attend a joint press conference at the White House in Washington, D.C., U.S., February 13, 2025. REUTERS/Kevin Lamarque//File Photo
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Overview

  • President Donald Trump announced a 25 percent tariff and an additional penalty on all Indian imports from August 1 in retaliation for New Delhi’s energy and defence ties with Russia.
  • India’s commerce ministry said it is studying the implications of the measures and reaffirmed its commitment to a fair, balanced trade agreement that safeguards farmers, entrepreneurs and MSMEs.
  • The rupee slid to its lowest level in over five months and the Nifty 50 and BSE Sensex each fell about 0.6 percent in offshore trading.
  • Trade experts said the steep duties threaten sectors accounting for more than 20 percent of India’s US exports, including smartphones, textiles, pharmaceuticals and auto parts, and could shave up to 40 basis points off economic growth.
  • Negotiators from both countries are pressing ahead with bilateral talks, including a sixth round planned for August 24, to avert broader reciprocal tariffs by Friday’s deadline.