Tue Aug 26 03:54:05 UTC 2025: **Summary:**

The United States is set to impose significantly higher tariffs (50%) on Indian goods, effective August 27, 2025. This follows President Trump’s announcement citing India’s high tariffs, non-monetary trade barriers, and continued purchase of Russian energy and military equipment as reasons for the increase. India’s Prime Minister Modi remains resolute, stating the government will find a way to manage the economic pressure. Analysts predict a negative impact on India’s GDP and job losses in sectors like textiles and seafood. While pharmaceuticals and electronics are temporarily exempt, the move has prompted India to strengthen ties with Russia and China, and to consider domestic measures like tax cuts and export packages. Negotiations between the U.S. and India are ongoing, despite reports of cancelled trips. The situation is further complicated by U.S. concerns about India’s role as a global clearinghouse for Russian oil.

**News Article:**

**U.S. Slaps 50% Tariffs on Indian Goods, Rattling Trade Ties**

*Washington D.C. -* The United States is escalating trade tensions with India by implementing a 50% tariff on Indian goods, effective August 27, 2025. The move, announced by President Donald Trump, cites concerns over India’s trade practices, including high tariffs, non-monetary trade barriers, and continued economic ties with Russia, particularly in the energy and defense sectors.

“India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August 1st,” Trump said on Truth Social July 30. “Thank you for your attention to this matter. MAGA!”

The U.S. Customs and Border Protection (CBP) issued a draft notice confirming the new tariffs, citing President Trump’s Executive Order 14329, “Addressing Threats to the United States by the Government of the Russian Federation,” as the basis for the action.

Indian Prime Minister Narendra Modi has responded defiantly, vowing to weather the economic pressure. “No matter how much pressure comes, we will keep increasing our strength to withstand it,” Modi said on Monday.

The tariffs are expected to have a significant impact on India’s economy. Nomura analysts warn that the duties could be “akin to a trade embargo,” particularly hurting smaller businesses. Sectors like textiles, seafood, and jewelry are already reporting cancelled orders and job losses. Economists estimate the tariffs could shave 70 to 100 basis points off India’s GDP growth.

While pharmaceuticals and electronics, including iPhones assembled in India, are currently exempt, the tariffs have prompted India to explore alternative economic partnerships. The country is deepening ties with Russia and China, and considering domestic measures to support exporters and boost consumer spending.

The trade dispute is further complicated by U.S. accusations that India is facilitating the trade of Russian oil. White House trade advisor Peter Navarro slammed India for “profiteering” by processing and exporting embargoed Russian crude. External Affairs Minister S. Jaishankar countered that India’s purchases helped stabilize global oil markets and had been tacitly approved by Washington.

Despite the escalating tensions, Jaishankar insists that negotiations are ongoing. “Negotiations are still going on in the sense that nobody said the negotiations are off,” he said.

The U.S. was India’s top export destination in 2024, with shipments worth $87.3 billion. The impact of these tariffs is yet to be seen, but many fear it will be a heavy hit to the country’s economy.

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