Overview

• An executive order took effect on August 27, doubling prior duties after negotiations failed to secure a lower cap tied to agricultural market access.
• Pharmaceuticals and electronics, including most smartphones made in India, are excluded from the new levy.
• Indian exporters report suspended orders and factory slowdowns in textiles, leather and jewellery, with the FIEO warning of steep losses to lower‑tariff competitors.
• Capital Economics estimates the shock could trim Indian GDP by about 0.8%, and Goldman Sachs says growth could slip below 6%.
• New Delhi has condemned the tariffs and is pursuing protective measures and outreach to Russia and China, while U.S. firms and consumers face higher costs and supply‑chain shifts.