Overview

• A 25% reciprocal tariff on Indian goods took effect on August 7, and a supplementary 25% duty linked to Russian oil purchases will raise most rates to 50% from August 27.
• Minister Pankaj Chaudhary told parliament that about 55% of India’s merchandise exports to the US by value are caught in the tariff escalation.
• Shrimp exporters facing potential disruptions to roughly $2 billion in annual shipments have sought emergency financing, interest subvention and moratoriums on working capital.
• New Delhi has lodged WTO challenges, engaged stakeholders on sectoral relief schemes and reserved the right to impose countermeasures to defend farmers, MSMEs and exporters.
• Despite the tariff standoff, India has kept a sixth round of trade talks with the US on the calendar for August 25, even as Washington’s signals on energy-linked negotiations remain mixed.