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Donald Trump Tariff Live: India Inc signals readiness to adapt
Supporting the government’s position on the US trade agreement, Indian industry representatives stated on Wednesday that the economy maintains its resilience whilst businesses plan to implement diversification strategies to counter the effects of President Donald Trump’s 50% additional tariffs on Indian exports.
Textiles, considered one of the most affected sectors by Trump’s tariffs, saw Apparel Export Promotion Council chairman Sudhir Sekhri address PM Narendra Modi through correspondence, endorsing the decision to safeguard farmers and dairy industry interests. He indicated that the industry is identifying alternative markets and approaches to address the impact of US measures.
Assocham president Sanjay Nayyar highlighted the adaptability of Indian businesses, noting, “Our businesses have a proven track record of adapting quickly, innovating and expanding into new frontiers. Exporters across textiles, gems and jewellery, agriculture and shrimps face steep duties, yet they are accelerating diversification into Africa, Latin America, Europe and Asean, while strengthening competitiveness at home.”
CII president Rajiv Memani emphasised additional priority areas, stating, “It’s time to turn challenges into advantages by diversifying our trade, promoting our MSMEs, strengthening our agriculture and building new global alliances. Indian industry must now invest in quality, branding and technology to make our products and services indispensable worldwide.”
Trump Tariffs Live: Government officials say no need to panic
Donald Trump Tariff Live: ‘It’s Modi’s war’ – Trump’s adviser makes startling remark on Ukraine
“If India stops buying Russian oil, it can get 25% off tomorrow,” Navarro said when asked whether Washington was still in talks with New Delhi. “What’s troubling to me is that Modi is a great leader, India is a mature democracy, and yet they look us bald-faced in the eye and say they don’t have the highest tariffs in the world, when in fact they do. Then they say we’re not going to stop buying Russian oil. Now what does that mean? Russia uses the money it gets to fund its war machine, kill more Ukrainians, and then Ukraine comes to us and Europe and says give us more money. So American taxpayers lose because we’ve got to fund Modi’s war,” Peter Navarro has said.
Trump Tariffs Live: RBI ready to step in to support economy
RBI governor Sanjay Malhotra on Monday addressed the potential impact of Washington’s decision to levy 50% tariffs on India’s merchandise exports, stating that the central bank has measures in place to protect the economy. He emphasised the initiatives to promote local currency trading as a step towards making the rupee more internationally recognised.
“RBI has always been very proactive in whatever needs to be done for the betterment, advancement and growth of our country,” Malhotra stated during an industry conference in Mumbai. He noted that whilst 45% of merchandise exports remain unaffected by the tariff structure, certain sectors including gems and jewellery, textiles, shrimp cultivation and MSMEs might experience adverse effects.
Donald Trump Tariff Live: RBI to engage with industry
The RBI plans to engage with industry representatives to evaluate the effects of the 50% US tariffs. These deliberations are scheduled for September, prior to the upcoming monetary policy committee assessment.
This engagement holds importance as the implementation of punitive tariffs on India affects 55% of annual US-bound exports valued at $48 billion. The sectors anticipated to face severe impacts from these charges include labour-intensive industries such as textiles and apparel, gems and jewellery, and marine products.
“A consultation is being planned in the wake of an uncertain international economic environment due to tariffs and trade policies,” said an official aware of the details.
The unprecedented high tariffs will subject primary US-bound exports to a cost disadvantage of 30-35%, reducing India’s competitive position against similar product manufacturers from China, Vietnam, Cambodia, the Philippines and additional Southeast and South Asian nations.
Donald Trump Tariff Live: India keeps options open for Chinese FDI
India may consider relaxing certain FDI restrictions on Chinese investments amidst improving bilateral relations, according to a senior government official. “If need be, we can take a relook at Press Note 3,” the official said. “All options are open.”
Last month, Niti Aayog, the government’s primary think tank, proposed eliminating the requirement for mandatory prior approval for Chinese FDI up to 24%.
Recent months have witnessed enhanced cooperation between the neighbouring countries, marked by reciprocal ministerial visits, resumption of direct flights, tourism facilitation, and increased dialogue on border issues. This development coincides with US President Donald Trump’s tariff policies. The US implemented 50% tariffs on India effective August 27.
Following Chinese foreign minister Wang Yi’s visit, China agreed to support India’s access to rare earth magnets and fertilisers. External affairs minister S Jaishankar visited Beijing this month, meeting Chinese President Xi Jinping in the first such visit in six years, aimed at relationship restoration. PM Narendra Modi is scheduled to attend the Shanghai Cooperation Organisation Summit from August 31-September 1, marking his first China visit in seven years. He is expected to hold discussions with President Jinping during the summit.
Trump Tariffs Live: Will India’s housing sector take a hit?
“At first glance, Trump’s tariffs may seem like a setback for India’s housing sector. If you look closer, the outlook, especially for affordable housing, still remains positive. Government subsidies continue to reduce the EMI burden for low-income households. Shifts in global supply chains could reduce costs of building materials, and rising employment opportunities in manufacturing and auto industry are helping consumers qualify for bigger home loans. While global trade may face disruption, India’s housing dream remains intact, supported by strong domestic demand, policy support and robust industry frameworks,” says Atul Monga- CEO& Co-Founder, BASIC Home Loan.
Donald Trump Tariff Live: MJ Akbar calls Trump’s policies “an exercise in power”
MJ Akbar, who previously served as Minister of State for External Affairs, expressed his criticism on Wednesday regarding US President Donald Trump’s tariff policies, describing them as “an exercise in power” that would prove detrimental to America’s interests in the near future.
He elaborated further by stating, “Trump’s tariffs seem at the moment an exercise in power, but in the very short run, they will weaken America. They will weaken America because this is a policy of overkill. This is also a policy that shows that President Trump does not believe in friends. He believes in dependence. Prime Minister Modi has effectively challenged the economic imperialism of America. President Trump does not understand, I think, that while actions have consequences, language also hurts, language disrupts. The language that he has used in international diplomacy is not acceptable to the world. Prime Minister Modi has shown that he is not going to run to Washington to pay a flattery tax…”
Finance Ministry warns of long-term risks from US tariffs
The finance ministry on Wednesday cautioned that while the immediate impact of US tariffs on Indian exports may be limited, their secondary and long-term effects could pose significant challenges.The remarks come as Washington’s 50% duties on Indian goods took effect from August 27, covering exports worth over $48 billion.
US Treasury Secretary on Trump’s 50% Tariff: ‘At the end of the day, we will come together’
“At the end the day, we will come together,” a top US official said on Wednesday, striking an optimistic note even as trade tensions flare between Washington and New Delhi after US President Donald Trump imposed a 50% tariff on India over its Russian oil imports.In an interview with Fox Business, the US treasury secretary Scott Bessent said, “I do think India is the world’s largest democracy and the US is the world’s largest economy. I think at the end of the day we will come together.”
‘Indian intransigence’ about opening its markets to American products, says US Economic Council Director as 50% tariff kicks in
Following Washington’s 50 per cent tariffs on Indian goods coming into effect earlier on Wednesday, US National Economic Council Director Kevin Hassett noted India’s “intransigence” to open its markets to American products while describing the current India-US relationship as a “complicated” one.Speaking to US Media during a White House gaggle, Hassett linked the US tariffs imposed on India to broader geopolitical efforts to pressure Russia over the Ukraine conflict.”I think it’s a complicated relationship. Part of it has been tied to the pressure we’ve been trying to put on Russia in order to secure a peace deal and save millions of lives. And then there’s the Indian intransigence about opening their markets to our products,” Hassett said.
India counters Trump’s 50% tariff: 40-country outreach to boost textile exports
In its first countermeasure to Donald Trump’s 50% tariff on Indian goods, India has unveiled a 40-country outreach plan to push textile exports. Key markets include the UK, Japan, South Korea, Germany, France and Australia. Officials said the aim is to position India as a reliable supplier of sustainable and innovative textile products, with Export Promotion Councils and Indian missions leading the push.
How will Donald Trump’s tariffs hit India Inc? Check sector & company-wise list
Indian economy strong despite tariff shock, says FICCI
FICCI president Harsha Vardhan Agarwal said the Indian economy continues to demonstrate resilience amid global headwinds. “The Indian economy is underpinned by a large and vibrant consumer base, robust macroeconomic fundamentals, continued economic reforms and enterprising businesses,” he said. Agarwal added that the proposed next-generation GST reforms announced by the Prime Minister would further boost growth.
US tariff won’t hit Indian steel, says Tata Steel CEO Narendran
Tata Steel CEO and Managing Director T V Narendran said on Wednesday that the 50 per cent tariff imposed by the US government is unlikely to impact the domestic steel industry but could affect the company’s European operations.
“The US tariff will not have much direct impact on the domestic steel sector as it does not export steel to them, but Tata Steel’s European operation, which exports steel to the US, may feel the pinch as a similar tariff on steel was applicable there too,” Narendran said.
He added that other sectors like textiles and gems and jewellery might feel the impact of the tariff. “Our growth rate is good and domestic demand increasing. Domestic steel demand was also growing. But we have to be competitive always,” he said, acknowledging global challenges and the new tariff situation.
Narendran said the government is preparing strategies to counter the tariff impact, including proposals for GST reforms.
Calling the Tata Group a “nation-building group,” Narendran said the company continues to work on developing communities around its operational areas. He also paid homage to former chairman Sir Dorabji Tata on his 166th birth anniversary and said there are many leadership lessons to learn from him.
US President Donald Trump’s decision to impose a 50% tariff on Indian goods from August 27 will hurt major export sectors but also presents an opportunity for India to strengthen its position as a resilient and future-ready trading partner, industry bodies said on Wednesday.
Government sources on Wednesday said there is “no cause for panic” over the 50% tariffs imposed by the US on Indian goods, adding communication channels between New Delhi and Washington remain open to resolve the issue.
India, US trade talks face red lines as both sides guard key interests
Negotiations between India and the US for a proposed trade pact will depend on how both sides deal with their “sensitivities and red lines”, sources told news agency PTI.
“For us it has been clearly spelt out. Ultimately there are some red lines that we cannot overlook, the deal is dependent upon how each party addresses those red lines,” the source added.
India has made it clear that it will not compromise on issues concerning farmers, fishermen and small businesses. Prime Minister Narendra Modi has also said he will “stand like a wall” to protect their interests.
Talks on a bilateral trade agreement (BTA) began in March and five rounds have been completed. The next round, scheduled for August 25, has been postponed by the US team.
The US wants reduced tariffs on products such as corn, soybeans, apples, almonds and ethanol, along with greater access for its dairy products. New Delhi is opposing these demands, saying they impact small and marginal farmers.
India has never given tariff concessions to any partner, including Australia and Switzerland, with which it has signed trade agreements.
The BTA aims to more than double trade to USD 500 billion by 2030 from the current USD 191 billion. Both countries plan to conclude the first phase by September-October 2025.
In 2024-25, bilateral trade stood at USD 131.8 billion, with India exporting USD 86.5 billion and importing USD 45.3 billion. The US remained India’s top trading partner between April and July 2025-26, at USD 12.56 billion.
When Prime Minister Narendra Modi lands in Tianjin this week for the Shanghai Cooperation Organisation (SCO) summit-his first visit to China since 2018-it won’t just be a symbolic handshake with Chinese President Xi Jinping. It will be a signal: India is hedging. Against the West. Against US President Donald Trump. And possibly against the very strategic alignment that Washington spent two decades building.
Rashtriya Swamsevak Sangh (RSS) chief Mohan Bhagwat on Wednesday said the true spirit of Swadeshi was the nation’s policy to engage internationally by choice and not under pressure.
Barclays has flagged ‘serious threat’ to around 70% of India’s exports to the US with the Donald Trump administration’s 50% tariffs coming into effect today. “The risks to growth for the Indian economy have become more real,” says Barclays in its latest report.
US tariffs push UP exporters to the brink of collapse: Akhilesh Yadav
Samajwadi Party chief and former Uttar Pradesh chief minister Akhilesh Yadav on Wednesday said steep US tariffs on Indian goods have left the state’s exporters on the verge of “collapse”. He accused the BJP government of failing to protect industries and jobs.
In a letter to exporters, Yadav said the retaliatory tariffs were the result of the Centre’s “failed foreign policy” and warned that millions of livelihoods in Uttar Pradesh were at risk.
“Exporters are standing at the edge of disaster. Payment cycles have been disrupted, suppliers and vendors are distressed, and industries that sustain lakhs of families are paralysed,” he said.
He urged the Centre and state to provide a “safety shield” to exporters, especially those under the One District One Product (ODOP) scheme.
Yadav said 40-plus industries like Banarasi sarees, carpets, brassware, leather, perfumes, and handicrafts have goods stuck in containers because of the tariffs.
“This is the miracle of the BJP’s foreign policy,” he said, adding that prosperity will return only when the BJP leaves power.
The 50% US tariff, announced by President Donald Trump over India’s Russian oil purchases, came into effect on Wednesday.
Markets brace for volatility as US tariffs on Indian goods hit 50%
Indian stock markets are expected to stay volatile in the near term after the US imposed a steep 50% tariff on Indian goods starting Wednesday. Analysts said sectors like textiles, gems and jewellery, leather, and machinery will be under pressure when trading resumes on Thursday, as markets were closed Wednesday for Ganesh Chaturthi.
The additional 25% duty announced by US President Donald Trump—on top of an existing 25%—targets India for its purchase of Russian oil. Export-heavy sectors, including textiles, footwear, shrimp, and chemicals, are among the most affected. However, pharma, electronics, and energy products remain exempt.
Experts believe panic selling is unlikely as the tariffs were expected. V K Vijayakumar of Geojit Investments said, “Markets will open lower, but DIIs with strong liquidity will provide support. The impact on overall corporate earnings is minimal.”
On Tuesday, the Sensex dropped 849 points to 80,786, while the Nifty fell 256 points to 24,712. FIIs sold stocks worth ₹6,516 crore, while DIIs bought Rs 7,060 crore.
Analysts expect export-linked stocks to face earnings downgrades, while domestic demand sectors and defensives like pharma and IT could see renewed interest.
Asian exports soar as firms rush shipments before US tariffs: Nomura
Major Asian economies saw a sharp rise in exports to the US earlier this year as companies rushed shipments ahead of reciprocal tariffs, according to a Nomura report. This front-loading significantly changed global trade patterns, with the surge most visible in the first half of 2025.
Taiwan led the pack with multiple months of double- and triple-digit growth. Its exports to the US jumped over 80% year-on-year in July, with a three-month average growth of 80.3%. Thailand and Vietnam also posted strong gains, averaging 36.2% and 31.3% respectively. Indonesia recorded 26.6% growth, while India saw a solid 20.1% increase. Malaysia’s exports rose sharply in April and May, while Singapore and the Philippines also benefited from the trend.
In contrast, China’s exports to the US continued to fall, dropping 24.1% recently despite a brief tariff truce.
Nomura warned that the boost from front-loading is temporary, predicting “strong payback effects” in the second half of 2025. The report noted similar short-lived spikes outside Asia, including Switzerland and the UK.
The study concludes that trade flows remain volatile under tariff uncertainty, and exporters could face major challenges ahead.
India in its first countermeasure to US President Donald Trump’s 50% tariff on Indian goods, announced dedicated outreach programmes in 40 key markets, including the UK, Japan, and South Korea, to boost textile exports, an official said on Wednesday. The targeted push will also cover Germany, France, Italy, Spain, the Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turkiye, the UAE, and Australia.
‘No country can replace India’: Diamond hub confident despite 50% US duty
The US decision to impose 50% tariffs on Indian goods from Wednesday is expected to hurt several export sectors, but diamond traders in Surat believe the effect will be temporary.
Jagdish Khunt, President of the Surat Diamond Association, said the industry will face some short-term challenges but will remain strong. “There is no doubt that 50% US tariff will affect Surat diamond industry, but the effect will be short-term, not long-term. No other country can replace India, as we account for 90% of the world’s diamond production,” he said.
Jayesh Patel, a diamond manufacturer, said the US is a big market, so some hurdles are expected. However, he added that Indian traders could explore other destinations if tariffs continue. “Every country has its own policy. If this continues, we might have to scale down our business and find markets in Europe or Russia,” Patel said.
The 50% tariff move, announced earlier this month, officially took effect on August 27. According to the US Customs and Border Protection, the higher duties are part of President Trump’s executive order aimed at “addressing threats to the United States by the Government of the Russian Federation.”
The tariffs cover all Indian products entering the US or cleared from bonded warehouses for consumption. The move poses significant challenges for India’s labour-intensive export sectors such as textiles, jewellery, and machinery.
German machinery industry faces ‘existential crisis’ after US tariff hike
Germany’s powerful plant and equipment makers’ federation has warned that the industry is in deep trouble after the United States widened its metal tariffs.
In a letter to European Commission President Ursula von der Leyen, the VDMA said the move had sent a “fresh chill of uncertainty” through European industry. The group’s president, Bertram Kawlath, warned the measures could push key machinery sectors “toward the precipice of an existential crisis”.
The warning comes after the EU and US agreed in July to a 15% tariff on EU goods, though talks are still ongoing. But the US decision to expand existing steel and aluminium tariffs goes far beyond this level for some products.
Earlier this year, President Donald Trump imposed a 50% tariff on both metals. Last week, the Commerce Department broadened these duties to cover hundreds of products containing steel and aluminium components.
According to the VDMA, about 30% of American machinery imports from the EU now face the 50% tariff based on metal content. The list of affected items is also expected to grow every four months.
The group said the tariffs not only increase costs but also add “painful new bureaucratic burdens” such as extra paperwork.
Kawlath urged the EU to act quickly to minimise the impact and ensure machinery and equipment are excluded from future tariffs.
The new duties come at a tough time for German manufacturers already struggling with a prolonged downturn. A recent EY report found that nearly 250,000 jobs have been lost in German industry since 2019.
The Commerce Ministry has scheduled multiple sessions this week to engage with exporters across various industries, including chemicals, gems and jewellery. These discussions aim to explore new export markets as a response to shield industries from the substantial 50 per cent US tariffs on Indian products, according to an official’s statement on Wednesday.
Commerce ministry to consult exporters on diversification as US tariffs bite
US slaps 50% tariffs on Indian goods, doubling existing duties
From Wednesday, President Donald Trump’s administration imposed 50% tariffs on many Indian products, doubling previous duties. The move targets India for continuing to buy Russian oil, part of Trump’s campaign to pressure Moscow over the Ukraine conflict.
Indian refiners unlikely to stop Russia crude oil trade under US pressure
India’s crude oil trade with Russia has become a contentious issue in trade negotiations with the United States, as the Trump administration has imposed an additional 25% tariff starting today. Despite this, Indian refinery executives have expressed that the procurement of Russian crude is expected to continue, as the Indian government remains resolute against US pressure. Indian refineries are maintaining their Russian oil imports, with officials indicating that there is little chance of the government ceasing crude trade, even in the face of US tariffs.
Uncertainties surrounding US tariffs might affect capex decisions this fiscal: Crisil
Ratings firm Crisil said on Wednesday that the uncertainties surrounding the US tariffs might be a new hindrance to capital expenditure decisions in the current financial year.
The additional 25 per cent tariff imposed by US President Donald Trump on India for its purchases of Russian oil came into effect on Wednesday, bringing the total amount of levies imposed on New Delhi to 50 per cent.
Crisil said that the government has so far been driving investments, with private corporate capital expenditure remaining muted.
According to the report, the imposition of tariffs is likely to hit sentiments, even as healthy corporate balance sheets support fresh investments.
In the current uncertain environment, free trade agreements (FTAs) can enhance investor confidence by reducing tariff barriers and establishing predictable trade policies, the ratings firm said.
As of August 24, US tariffs on India stand higher than those on Bangladesh, Vietnam and Indonesia.
Industry analysts warn of fallout as export hubs brace for pain; trade deal still in limbo— key takeaways from Trump’s 50% tariffs on India
The additional 25 percent tariff imposed by former US President Donald Trump on Indian goods, in response to New Delhi’s purchases of Russian oil, has now taken effect. This increase raises the total tariff on these exports to 50 percent. Initially, Trump announced a 25 percent reciprocal tariff on Indian goods starting August 7, alongside similar measures for approximately 70 other countries. Subsequently, he doubled the tariffs on Indian goods to 50 percent, citing India’s imports of Russian crude oil, but provided a 21-day period for negotiations.
Kanpur businessmen express disappointment over US tariffs’s hit on Indian imports
As the US 50 per cent tariff on Indian imports comes into effect from Wednesday, leather businessmen from Kanpur expressed disappointment over the decision.
Shamim Azad, a leather exporter, stated that the United Kingdom is currently experiencing a recession and he had some work in the US, but it has completely “flopped” at present. He mentioned that the US customers have asked them to put the orders on hold due to the tariffs.
“It will be implemented from today. The UK is going through a recession, and we had some work in the US that also flopped. Customers asked us to cancel the orders we had already placed. Our US customer said that there will be no production until a decision is taken on tariff. The situation is very bad at this time,” he said.
Trump’s 50% tariffs: India can’t lose ground in US, its most critical market: Messe Frankfurt’s Raj Manek
Amid ongoing tariff challenges and global uncertainties, India must sharpen its focus on innovation and sustainability to achieve its $100 billion target in textiles, according to Raj Manek, Executive Director and Board Member of Messe Frankfurt Asia Holdings Ltd. He emphasized that investment in man-made fibres (MMF) and performance fabrics is crucial at this point.
“Over 60% of global fibre consumption is now in MMF,” Manek noted. “And with the PLI scheme targeting MMF apparel and technical textiles, we are in a good position to build scale and future-ready capacity.” He made these remarks following the conclusion of the 13th edition of Gartex Texprocess India, a tradeshow on garment and textile machinery, held in the capital. Manek also highlighted the importance of using energy-efficient machinery, managing effluents properly, and converting waste to value, stating that these measures will help meet ESG expectations and lower costs.
US tariffs to hit Bengal’s labour-intensive leather, marine, engineering exports
The additional 25 percent tariff imposed by US President Donald Trump on India is expected to significantly impact West Bengal’s export-driven economy. Stakeholders have expressed concerns that the state’s labor-intensive leather, engineering, and marine sectors are likely to face losses, especially with the festive season approaching.
The increased tariffs on Indian products, linked to the country’s purchases of Russian oil, took effect on Wednesday, raising the total tariff on New Delhi to 50 percent. Exporters have reported that shipments and production are “currently on hold” due to the geopolitical tensions exacerbated by the US tariffs.
Trade estimates suggest that the move will affect at least Rs 45,000 crore worth of Indian exports, with Bengal being one of the “hardest-hit” states. Yogesh Gupta, regional chairman (east) of the Federation of Indian Export Organisations (FIEO) and a prominent marine exporter, told PTI, “Labour-intensive industries are under severe pressure. In marine exports, the maximum of Bengal’s annual shipments may collapse.”
50% tariffs on India to blowback on US? GDP growth could shrink 40–50 bps, inflation to flare, claims SBI report
The recent US decision to impose steep tariffs on Indian goods could boomerang on the American economy by pushing up inflation and shaving growth, according to an analysis by the State Bank of India (SBI).
The report, quoted by ANI, estimated that US GDP could be reduced by 40–50 basis points as a result of the new duties, while inflationary pressures were likely to rise due to higher input costs and a weaker dollar. “We believe that US tariffs are likely to affect US GDP by 40-50 bps along with higher input cost inflation,” the report noted.
Import-dependent industries such as electronics, automobiles and consumer durables were already feeling the pinch. The SBI analysis projected that inflation in the US will stay above the Federal Reserve’s 2 per cent target through 2026, driven by tariff pass-through and exchange rate movements.
FIEO sounds alarm as US tariffs bite
Federation of Indian Export Organisations (FIEO) on Tuesday had warned that steep US tariffs have forced textile and apparel manufacturers in Tirupur, Noida, and Surat to halt production, reported PTI.
President S C Ralhan said about Rs 3.89–3.98 lakh crore worth of India’s exports to the US now face 30–35 per cent cost disadvantages, making them uncompetitive against rivals from Vietnam, Bangladesh and China. Labour-intensive sectors like leather, shrimp and handicrafts are also at risk.
He urged immediate support through cheaper credit, loan moratoriums and faster trade deals, while stressing urgent diplomatic engagement with Washington.
India-US trade deal still in limbo
Talks on a bilateral trade agreement (BTA) between India and the US have remained shrouded in uncertainty, with the American delegation having postponed its scheduled August 25 visit to New Delhi.
US Treasury Secretary Scott Bessent has accused India of “profiteering” by reselling Russian oil, while trade talks between the two sides remain on “thin ice,” according to experts.
Analysts warn that unless Prime Minister Modi and President Trump engage directly, chances of reviving the deal remain slim.
The deadlock raises uncertainty for exporters, who had earlier hoped for tariff relief through a limited trade pact.
Former Foreign Secretary and Rajya Sabha MP Harsh Vardhan Shringla remains hopeful for a FTA between India and US
Former Foreign Secretary and Rajya Sabha MP Harsh Vardhan Shringla expressed optimism on Wednesday about India concluding a “satisfactory mutually beneficial” Free Trade Agreement (FTA) with the US as 50 per cent tariffs take effect. Shringla highlighted the “close and special partnership” between Prime Minister Naredra Modi and Donald Trump. Contrary to certain reports suggesting that the former FS indicated a Free Trade Agreement would happen soon, he clarified that he was hopeful about the possibility. This distinction provides important context on how the Modi-Trump relationship could potentially pave the way for future trade cooperation, rather than suggesting any imminent certainty.
NATO advisor Krystle Kaul on US tariffs on India
“It will set back relations between India and the US, which have taken so many decades to rebuild; it’s going to impact businesses,” she said.
Trump’s 50% tariffs come into effect
India faces a 50% tariff on goods exported to the US, effective today, as imposed by the Donald Trump administration. The tariffs will impact Rs 4,00,060 crore worth of Indian export merchandise to America.
Meanwhile, as trade talks between the two nations continue to stall, the govt is exploring multiple ways to minimise the effects of the punitive tariffs. Discussions are ongoing between India and the US regarding a bilateral trade agreement (BTA). The US delegation’s visit to India, planned for August 25, has been deferred.
‘Somebody is not very happy’: Fiji PM Rabuka backs India amid 50% US tariffs; calls PM Modi ‘big enough to weather discomforts’
In his statement, Rabuka said, “…The recent announcements of the tariffs (by the United States)…I told him (PM Modi) the other day, somebody is not very happy with you, but then you are big enough to weather those discomforts,” as quoted by ANI.
US tariffs likely to affect US GDP by 40-50 bps, fueling inflationary pressures: SBI analysis
The recent decision by the United States to impose steep tariffs on Indian goods is expected to weigh on the US economy, increasing inflationary pressures and impacting growth, according to a report by the State Bank of India (SBI).
The report stated that US GDP could be affected by 40-50 basis points due to the new tariffs, while the economy is also likely to face higher input cost inflation.
“We believe that US tariffs are likely to affect US GDP by 40-50 bps along with higher input cost inflation,” the report noted.
The report highlighted that signs of renewed inflationary pressure have already begun to emerge in the US, mainly due to the pass-through effects of the recent tariffs and a weaker dollar.
How Trump’s tariffs will impact India
Donald Trump tariffs: Stories from the battlegrounds
Indian exporters are scrambling after Trump’s 50 per cent tariffs. Big players like Dawar Group, Farida Group and AEPC’s Sudhir Sekhri are offering deep discounts to retain US buyers, while industry councils urge “sell at cost” strategies. Others are scouting new markets — Dawar in Russia and Latin America, Corona Steel in Africa, and jewellery exporters in the domestic market — though most admit options are limited.
Exporters rushed shipments before the deadline, from Bharat Forge and Gokaldas to shrimp and gems exporters, with even T-shirts airlifted to beat higher duties. But orders from the US are now uncertain, buyers elsewhere are driving hard bargains, and early stress is showing — Tirupur dyeing units cutting shifts, shrimp units halting overtime, and jewellery exporters shedding contract workers.
With larger firms competing for alternative markets, smaller exporters may be squeezed further. The government is trying to connect exporters with global chains and banking on trade deals with the UK and EU, but for now the outlook remains bleak unless tariffs ease soon.
Amid the looming 50% tariffs, Trump reiterates tariff warning forced quick resolution between India, Pak
US President Donald Trump has once again claimed that he personally intervened to stop a nuclear confrontation between India and Pakistan during heightened tensions between the two neighbours, while Operation Sindoor was underway in response to the Pahalgam terror attack, earlier this year. Speaking during a cabinet meeting at the White House on Wednesday, Trump said he threatened India with steep tariffs and refused to proceed with a trade deal unless the conflict was resolved. “I am talking to a very terrific man, Prime Minister of India, Narendra Modi. I said what’s going on with you and Pakistan… The hatred was tremendous. This has been going on for a hell of a long time, like, sometimes with different names for hundreds of years,” Trump said.
‘Necessary and appropriate’ to impose tariffs on India: US
Issued by the department of homeland security, the notification issued to India said the tariffs are in response to “threats to the United States by the govt of the Russian Federation”, and it is implementing a presidential order that had determined it is “necessary and appropriate” to impose tariffs on India, “which is directly or indirectly importing Russian Federation oil”.
‘T-Day’: India braces for Trump’s 50% tariffs, set to kick in today
The United States declared what is effectively a limited trade war on India, notifying a 50% tariff (25% taxes plus 25% penalty) on most goods imports from India. Issued by the Department of Homeland Security, the notification stated the tariffs are in response to “threats to the United States by the govt of the Russian Federation,” and it is implementing a presidential order that had determined it is “necessary and appropriate” to impose tariffs on India, “which is directly or indirectly importing Russian Federation oil.” They are set to into effect at 12.01 am EST (9.30am (IST)).
Tariff trauma spooks Dalal Street as sensex slides 849 points