Overview

• President Trump’s executive order on August 7 doubled US duties on Indian goods from 25% to 50%, targeting New Delhi’s ongoing purchases of discounted Russian crude.
• India’s Ministry of External Affairs branded the tariff hike “unfair, unjustified and unreasonable,” and Prime Minister Modi asserted he would not sacrifice farmers’ interests.
• S.C. Ralhan of the Federation of Indian Export Organisations cautioned that the levy will erode export competitiveness, render many orders unviable and threaten jobs in labour-intensive sectors.
• China’s foreign ministry spokesperson Guo Jiakun condemned the move as a clear case of “tariff abuse,” marking rare Beijing backing of India in its dispute with Washington.
• Despite heightened tensions, both sides maintain they are willing to negotiate and have scheduled a sixth round of bilateral trade talks in New Delhi later this month.