Overview

• The tariffs announced by President Trump levy a 25% surcharge on Indian imports starting August 7 and signal further penalties over Russian energy and defense purchases.
• Indian refiners plan to honor long-term contracts for discounted Russian crude, citing EU price caps and logistical commitments despite threats of up to 100% secondary tariffs.
• Key Indian ministries have been tasked with drafting lists of sector-specific tariff concessions ahead of US trade officials’ visit to New Delhi on August 25.
• Research from the Bank of Baroda indicates the US duties could trim India’s GDP growth by about 0.2 percentage points, with labour-intensive exports like garments and precious stones hit hardest.
• India has told the WTO it reserves the right to impose counter-tariffs on US steel, aluminium and automobile imports if American duties remain in place.