Overview

• The combined 50% duty consists of a 25% reciprocal tariff effective July 31 and an additional 25% penalty announced August 6 over India’s Russian oil imports.
• President Trump has suspended bilateral trade talks until New Delhi addresses its energy ties with Russia, ruling out negotiations “until we get it resolved.”
• Prime Minister Modi denounced the levies as “unfair, unjustified and unreasonable” and pledged to safeguard farmers, fishermen and dairy producers.
• Industry bodies warn that $8.1 billion in Indian exports could be at risk, and New Delhi is examining countermeasures targeting up to $12 billion of US goods.
• Senior officials and economists are advocating a strategic autonomy framework, urging diversification of partnerships and reinforcement of domestic production incentives.