Overview

• Combined duties of up to 50% took effect on August 27 for Indian goods entered for consumption in the U.S., with government and industry estimates putting the exposed trade at roughly $48–60 billion.
• Planned negotiations in New Delhi were postponed, but officials say informal contacts continue and India is not preparing immediate retaliation while insisting a deal requires removal of both tariff layers.
• Commerce minister Piyush Goyal signaled a push to diversify markets through Middle East FTAs, faster export-promotion measures and potential SEZ/EOU reforms, while stakeholders press for liquidity relief.
• Exporters report cancellations and early layoffs in labor‑intensive sectors such as textiles, gems and shrimp, analysts warn of orders shifting to China, Vietnam and Bangladesh, and India’s rupee hit a record low.
• White House adviser Peter Navarro escalated criticism by branding India an ‘oil money laundromat’ and tying the move to Russia’s war financing, as a Jefferies report widely cited in India attributes the shock partly to President Trump’s personal pique over spurned India‑Pakistan mediation.