Overview

• A 25% reciprocal tariff on Indian goods took effect Aug. 7 and an additional 25% levy tied to Russian oil purchases is scheduled for Aug. 27, lifting total duties to 50%.
• Treasury Secretary Scott Bessent said India is "just profiteering" by buying discounted Russian crude and reselling refined products, noting Russian oil now accounts for roughly 42% of India’s imports and defending the absence of similar penalties on China.
• The planned Aug. 25–29 visit by U.S. trade negotiators to New Delhi has been called off, leaving a prospective bilateral trade agreement on hold.
• India has suspended its 11% cotton import duty through Sept. 30 and is weighing targeted credit and insurance support for export‑heavy MSME sectors such as textiles and garments.
• New Delhi estimates about $48.2 billion of 2024 merchandise exports to the U.S. are exposed; Moody’s expects demand to fall "very substantially" and Fitch flags moderate downside risks to growth if high tariffs persist.