Overview

• The surtax increased from 25% to 50% on August 27, with Washington citing a bid to curb Moscow’s war financing as India now sources roughly 36% of its crude from Russia, up from about 2% before 2022.
• Exemptions narrow the immediate scope—iPhones assembled in India are among products not covered—though the administration has flagged sectoral duties of up to 100% for semiconductors and electronics.
• Indian exporters report canceled U.S. orders in labor‑intensive sectors like textiles and seafood, and economists warn growth could fall below 6% as India sells more than $87 billion in goods annually to the U.S.
• New Delhi is preparing a $2.8 billion support package for exporters and deepening outreach to BRICS partners, including tariff relief for Russia and a planned visit by Prime Minister Narendra Modi to Beijing.
• Bilateral talks remain stalled over access to India’s agriculture and dairy markets, with Indian media reporting U.S. negotiators canceled a planned visit, signaling strained negotiations.