Listeners, welcome to India Tariff News and Tracker—a special update on the latest headlines and tariff developments between the US, President Trump, and India, recorded September 5, 2025.

The trade relationship between the United States and India has reached a new level of tension, with President Trump’s administration doubling down on tariffs targeting Indian exports. According to the latest KPMG report from September 2025, the US has sharply raised tariffs on Indian goods, increasing the rate from 25% to a staggering 50% as of August. This has delivered a significant blow to key Indian export sectors, particularly the country’s vital gems and jewelry industry, which relies heavily on American demand.

Former US officials and trade experts have voiced concerns that these tariff hikes—cumulative 50% levies on select Indian exports—risk not just the economic partnership but the broader strategic alliance between Washington and New Delhi. Jake Sullivan and Kurt Campbell, both well-known from the Joe Biden era, recently warned in Foreign Affairs that the “unprecedented discord” brought about by these tariffs could push India closer to China and Russia's strategic orbit, threatening longstanding bipartisan support for strong ties between the world’s two biggest democracies.

Behind the numbers, the motives are as contentious as the consequences. President Trump’s trade team defends the move as a push for “fair and reciprocal trade,” mainly justified by what Trump repeatedly calls a “one-sided” relationship in favor of India. But trade analysts, including those at The Wire, note that the White House is layering a 25% “fair and reciprocal” tariff on top of another 25% directly linked to India’s energy imports from Russia. This effectively weaponizes trade negotiations for broader geopolitical aims.

India, meanwhile, is under mounting pressure. An open letter from a coalition of major Indian civil society groups has labeled the latest US demands as “tariff blackmail.” The coalition warns that caving in could jeopardize India's autonomy over drug patent policy, digital data management, and the massive government procurement market. The US is also reportedly pressing India to limit its ties with Russia, Iran, and Venezuela—making this much more than a fight over tariffs alone.

Economically, the new tariffs are already being felt by American consumers and businesses as well. Analysis from Yale’s Budget Lab shows that, thanks to all 2025 tariffs including those on India, the average effective tariff rate in the US has shot up to 17.4%, the highest since the 1930s. This increases costs for imports and results in rising prices and lower purchasing power for US households.

Despite the turmoil, Indian authorities remain hopeful that this 50% tariff is a short-term tactic, not a permanent shift. India’s Chief Economic Advisor, V. Anantha Nageswaran, suggested this approach won’t be a “long-term positive” for either country and called for cooler heads to prevail.

In a cryptic social media post, President Trump himself acknowledged rising tensions, remarking that “China kills us with tariffs, India kills us with tariffs, Brazil kills us with tariffs,” suggesting dwindling hopes for an immediate trade deal with India.

Listeners, we’ll keep tracking these fast-moving developments and what they mean for India’s economy, trade policy, and global standing in the weeks ahead. Thanks for tuning in to India Tariff News and Tracker—don’t forget to subscribe for your weekly update.

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Listeners, welcome to India Tariff News and Tracker.

The US-India trade landscape has seen high drama this week as President Donald Trump fiercely defended his administration’s imposition of a sweeping 50 percent tariff on Indian exports, a move now firmly in effect since August 27, 2025. According to Trump, these tariffs are a direct response to what he calls a “one-sided” trade relationship and to India’s continued purchases of discounted Russian oil—actions Washington argues harm US strategic interests and domestic manufacturers. Trump’s message has been clear: for years, American companies faced steep import duties in India—citing the iconic example of Harley-Davidson motorcycles, which Trump says were subject to tariffs of up to 200 percent unless built locally—whereas Indian goods, from textiles to leather goods, flowed relatively freely into the US market. As reported by Economic Times, the new 50 percent tariff comprises an initial 25 percent reciprocal tariff plus an additional 25 percent penalty specifically tied to India’s ongoing purchases of Russian oil.

India has repeatedly rejected Washington’s rationale for these tariff hikes, with Prime Minister Modi emphasizing the country’s “red lines” around protecting farmers and small industry. During recent remarks quoted in India Today, Modi doubled down that India “will never compromise on the interests of farmers, fishermen, and dairy farmers,” even under significant external pressure. At the same time, India’s government has described these US tariffs as unjustified and unreasonable, while pointing out that New Delhi has offered in the past to dramatically reduce trade barriers—but according to Trump, such gestures are “too late.”

Both nations have engaged in protracted negotiations for a new Bilateral Trade Agreement, but the abrupt tariff escalation derailed the latest round of talks, which were scheduled for late August and now remain postponed with no new date set. This is a significant blow for both sides, especially as they had aimed to conclude an initial agreement by later this year, with hopes of doubling bilateral trade to $500 billion by 2030.

Criticism of the Trump tariff strategy isn’t limited to India. Prominent US analysts like NYU’s Edward Price have called the tariffs counterproductive, warning on Times of India that this approach risks alienating a crucial partner at a time when the US is already locked in conflicts with China and Russia. Congressional Democrats on the House Foreign Affairs Committee have also labeled the move “harmful to Americans” and questioned the logic of targeting India—rather than China—with the harshest measures.

Listeners, this round of tariffs has sent shockwaves through global markets and risks seriously testing US-India relations, which are pivotal for the Indo-Pacific balance of power. As this story continues to evolve, we’ll bring you the latest news and analysis here.

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US tariffs on Indian exports have reached an unprecedented 50 percent, with the rate doubling at the end of August. This move comes directly from President Donald Trump, who announced the new levies as both a reciprocal trade action and a penalty linked to India’s continued purchases of oil and military equipment from Russia. According to Bloomberg, Trump claimed India recently offered to cut its tariffs on US goods to zero, but said, “It’s getting late. They should have done so years ago.” Trump stated that the economic relationship has been “a totally one-sided disaster for many decades,” arguing that India’s high tariffs have long shut American businesses out of the Indian market.

Business Today notes that the new 50 percent tariff applies to a wide range of Indian exports, including textiles, gems and jewelry, footwear, chemicals, machinery, leather goods, and shrimp. However, sectors such as pharmaceuticals and electronics have so far been spared from these steep duties. Analysts forecast India could lose between $55 to $60 billion in export revenue, which would likely result in significant job losses and a projected 1 percent GDP hit for India over the next year. This drastic change could push Indian exports to the US down from approximately $87 billion in 2024 to about $50 billion by 2026.

Trade relations have grown especially tense following comments from US Treasury Secretary Scott Bessent, who flagged the lack of progress on a new trade deal despite an early start in April. Trump’s administration attributes the tariff escalation not only to slow trade negotiations but also to India's expanding oil and defense purchases from Russia—a factor Trump repeatedly highlighted in recent posts.

Despite the pressure, India’s government has dismissed the US tariffs as “unfair, unreasonable and unjustified.” Trade Minister Piyush Goyal affirmed India’s resolve, stating, “India will neither bow down nor ever appear weak.” Recent strong GDP growth numbers—7.8 percent for April to June—have been highlighted by Indian officials as a sign of resilience, but expert warnings persist about the potential for the new tariffs to dampen future economic expansion.

At this stage, legal challenges over Trump’s tariff policy are underway in US courts, but the higher rates remain in effect. Both the Indian government and US officials have left the door open to further negotiations but significant hurdles remain, and appeals are expected to drag into October.

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Listeners, today’s breaking story is the dramatic escalation in tariffs between the United States under President Donald Trump and India, which has put bilateral trade and diplomatic relations under severe strain. As of this week, the US has imposed a staggering 50% tariff on Indian goods—the highest rate applied to any major trading partner other than Brazil, according to ScanX Trade and NDTV reports. These tariffs began with a 25% “reciprocal” duty targeting Indian exports, but quickly doubled after India signaled its intention to continue purchasing Russian oil, defying US demands to restrict those imports.

The Trump administration has justified these actions as a way to punish what it sees as unfair Indian trade policies and India’s refusal to stop buying Russian oil. However, investigative reporting by outlets like the Times of India and the Hindustan Times suggest the real motive may be less about oil and more about Trump’s personal displeasure over being denied a mediating role in the India-Pakistan conflict. That, combined with increasingly antagonistic rhetoric from US officials—calling India’s economy ‘dead’ and labeling the Ukraine conflict ‘Modi’s war’—has soured relations further.

Prime Minister Narendra Modi has responded with restraint but determination, telling Indian media that pressure from Trump’s tariffs will not deter India’s strategic choices or economic priorities. According to India’s Ministry of Commerce, New Delhi has “effectively walked away from trade talks,” judging the tariffs to be “unjustified.” Yet, government sources confirm channels of informal communication remain open for possible future negotiations on a broader trade deal.

Meanwhile, prominent commentators and former diplomats have criticized Trump’s approach. Fareed Zakaria, Nikki Haley, and Kenneth Juster have all warned that these unilateral tariffs represent a major setback in US-India relations, undermining decades of bipartisan progress and making it harder for both countries to counter the growing power of China. NDTV panelists have called the US actions “bullying,” arguing that treating a major nation like India as if it were a subordinate is counterproductive and divisive.

Importantly, a US appeals court has just declared President Trump’s tariff measures illegal, ruling that such action exceeds presidential authority and should fall to Congress. Relief for Indian exporters, however, depends on the Supreme Court’s final decision, which might not come until early 2026, meaning these 50% duties will remain in place for months. Experts like Abhijit Das of the Centre for WTO Studies say this is a “moral victory” for India and like-minded countries, but for now, Indian producers and shippers will continue to face these severe trade barriers.

India’s government is working on steps to protect exporters and boost domestic demand to cushion the impact. Economic Affairs Secretary Ajay Thakur has expressed confidence that India’s fiscal targets remain achievable, despite mounting trade tensions.

Listeners, with the impact of these tariffs still unfolding, and courts and diplomats locked in high-stakes debate, the next few months could be decisive for India-US trade relations. Stay tuned and subscribe for the next update on India Tariff News and Tracker. Thanks for tuning in; this has been a quiet please production. For more, check out quiet please dot ai.

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Listeners, today’s biggest headline in US-India trade is the implementation of a staggering 50% US tariff on Indian imports as of August 27, 2025. According to Coppersmith Global Logistics and confirmed by multiple industry news outlets, the US doubled its previous 25% tariff with an additional 25% penalty hike. This combined rate now applies to nearly all Indian goods entering the American market, unless the cargo was already in transit before August 27 or qualifies for specific exemptions under certain headings in the Harmonized Tariff Schedule.

This dramatic escalation, as explained in recent reports from TimeTrex and VitalLaw, is rooted in two factors. First, longstanding trade grievances about Indian tariffs on US goods and what the Trump administration calls an unfair trade balance. Second, a newly invoked penalty linked to India’s continued purchase of Russian crude oil and military equipment. The penalty tariff was enacted through an executive order under the International Emergency Economic Powers Act, establishing a precedent for quick and sweeping action without Congressional approval.

Listeners should know that this move has shaken both the Indian export sector and US importers. In practical terms, companies with Indian-origin goods now face a duty exposure that is double what it was just weeks ago. If your company is importing textiles, pharmaceuticals, machinery, or any of the broad range of products from India, the cost impact is immediate and substantial. Coppersmith Global Logistics advises regular reviews of your product classifications and close checks on possible exemptions to avoid unnecessary overpayment.

The broader context is deeply political. As covered in The Economic Times and Jefferies investment research, President Trump’s imposition of these tariffs was not just about oil or trade: Washington insiders and nonpartisan US Congressional Research Service reports suggest that Trump’s move followed India’s refusal to accept US mediation in its conflict with Pakistan earlier this year. The failed India-US trade deal and toughened stance have coincided with President Trump hosting Pakistan’s army chief at the White House, drawing sharp criticism from New Delhi. The result, as the Times of India points out, is a level of mistrust not seen in decades—a stark shift from the bipartisan partnership cultivated over 25 years.

Visual Capitalist’s global tariff data confirms that, alongside Brazil, India now faces the highest US tariff rate globally at 50%. While some US officials claim these tough tariffs are about protecting American jobs, the reality is deepening economic pain for both sides: US consumer prices are rising, and India’s growth forecasts are being revised downward.

As the situation unfolds, there is no sign of immediate negotiations or a rollback of the hikes, and India has so far held back from retaliatory tariffs, focusing instead on shoring up its domestic economy and seeking new export markets.

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Listeners, today’s edition of India Tariff News and Tracker features what may be the most consequential trade development in years for India–U.S. relations: as of this week, a 50% tariff imposed by the United States on a range of Indian goods is officially in effect. This move was initiated under the Trump administration, which has returned to Washington and wasted no time targeting India with sweeping tariff hikes. CNBC Arabia reports this tariff applies to sectors across the board, with a particularly punishing effect on Indian textile exports—a cornerstone of India’s labor market and a major source of employment for millions.

As Horizons Middle East & Africa points out, the U.S. remains India’s largest export market, and last year Indian exporters sent $87 billion worth of goods to American buyers. Now, high tariffs threaten to shut down access to this huge market, already resulting in buyers putting new orders on hold and signaling potential job losses in the months ahead. Observers warn that if the impasse drags on without a breakthrough or trade deal, India’s labor-intensive sectors could be hit especially hard.

The Indian Express reports that political reactions in New Delhi have been swift and sharp. The opposition Congress party criticized what it called a “MAHA headache,” blaming the current government for allowing the situation to escalate as former President Trump doubles down on his objections to India’s continued purchases of Russian oil. This, sources say, is a major trigger for the U.S. tariff action.

At the diplomatic level, the ramifications are already evident. With no U.S.-India trade deal in sight, Prime Minister Modi is pivoting India’s global trade strategy. According to coverage from Horizons Middle East & Africa, India is strengthening ties within the BRICS bloc; Modi is expected to meet China’s President Xi Jinping next week, and India and Russia have pledged to ramp up their own trade regardless of U.S. moves. Of note, oil has so far been exempt from the tariffs, leaving energy flows between India and the U.S. intact for now.

Industry watchers are warning that even though oil is excluded, the broader freeze in U.S.-India trade is likely to reverberate through several sectors, prompting urgent calls from Indian exporters and policymakers for diplomatic solutions or diversification toward new markets.

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Listeners, today’s top story is the escalation of tariffs between the United States and India, with dramatic new developments set to shake trade ties this week. Starting Wednesday, Indian goods entering the US will be hit with a 50 percent tariff, as President Trump doubles down on duties in a bid to pressure India over its continued import of discounted Russian oil. This move effectively doubles the existing tariff rate, which had already been causing pain across sectors like textiles, pharmaceuticals, gems and jewelry, auto parts, and especially seafood, where exporters are now bracing for large-scale order cancellations.

According to Business Standard and the Times of India, this 50 percent tariff could threaten up to $87 billion in Indian exports—nearly a fifth of India’s outbound shipments to its single largest export destination. Indian officials anticipate the new tariffs could reduce India’s GDP growth by up to 0.6 percentage points, with financial agencies like Nomura projecting a new base case growth rate of 6.0 percent for the coming fiscal year.

The backdrop: President Trump’s administration has defended these duties as “aggressive economic leverage,” deploying them not simply for trade goals but as an explicit tool to punish India’s energy ties with Russia. US Vice President JD Vance stated that the tariffs are designed to make it harder for Russia to benefit from its oil trade, with the intention of forcing Moscow to stop its ongoing military campaign in Ukraine. Notably, New Delhi has forcefully rejected the American line, maintaining its right to source oil wherever it secures the best deal, especially in the face of Western sanctions on Moscow. India’s ambassador to Russia, Vinay Kumar, has repeatedly called the US move “unfair, unreasonable, and unjustified.”

The diplomatic fallout is severe. Scheduled high-level US-India trade talks were abruptly called off, and India’s Prime Minister’s Office is convening an emergency meeting to develop sector-specific relief, particularly targeted at small- and medium-scale exporters most vulnerable to cost shocks. Policy measures under review include cluster-based working capital funds and credit guarantees to cushion the blow.

External Affairs Minister S Jaishankar reflected on the pressures, stressing that India’s trade policy would remain rooted in the interests of its farmers and small businesses, and that diversification of export markets was now a strategic imperative. He called out what he called the “novel use” of tariffs for non-trade objectives under Trump, emphasizing that India will not compromise its strategic autonomy.

This fast-moving tariff standoff leaves the future of India–US economic ties uncertain. As Indian exporters dig in and officials scramble, all eyes are on whether ongoing diplomacy can deliver any relief, or if New Delhi will redouble efforts to boost local consumption and pivot towards alternative markets.

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Welcome to India Tariff News and Tracker. Today’s spotlight is on a week of remarkable tension and change in the US-India economic relationship, shaped by dramatic US tariff hikes and sharp responses from Indian leaders.

US President Donald Trump has moved ahead with one of the most aggressive tariff actions in the world, imposing a 25 percent tariff on Indian goods, and confirming that this rate will double to a stunning 50 percent from August 27, 2025. According to Telangana Today and Times of India, these tariffs are explicitly a response to India’s growing imports of Russian oil—an area where Indian policymakers maintain their right to independent decisions. President Trump says the purchases are helping Russia fund its war in Ukraine, but Indian leaders, including Foreign Minister S. Jaishankar, have dismissed the move as unfair, pointing out that other major buyers of Russian oil such as China and the European Union have not faced similar US penalties.

The new trade barriers are already having a chilling effect on India’s key export sectors. Kolkata’s $4.1 billion leather industry, for instance, is now grappling with immediate price shocks, with US import duties on Indian footwear jumping from 5-8 percent to nearly 50 percent. Exporters warn that American retailers are quickly shifting supply chains to competitors like Vietnam and Indonesia, whose imports face much lower tariffs. Council for Leather Exports vice chairman Ramesh Juneja said the industry is almost paralyzed, and some Indian manufacturers are exploring moving final production to Europe to sidestep the new duties, as reported by the Times of India.

Beyond the industry impact, trade experts such as those at Capital Economics warn that the full brunt of these tariffs could trim India’s economic output by at least 0.8 percentage points this year and the next. That would push Indian GDP growth below six percent, undermining one of the world’s most promising emerging economies.

India is seeking to cushion the blow, with Prime Minister Narendra Modi announcing new cuts to the goods and services tax, potentially bringing everyday prices down for Indian consumers and businesses. This tax overhaul aims to soften the pain as Indian exporters face plunging orders and uncertainty.

Negotiations, however, are at an impasse. US trade representatives abruptly canceled a planned visit to New Delhi this week, removing a pathway for urgent dialogue. Despite the standoff, Indian officials say lines of communication remain open and they will defend the interests of their farmers and small producers, drawing a hard line on issues like agricultural subsidies.

Many analysts and policy voices, such as those at the Australian Institute of International Affairs, are urging Washington to adopt a more collaborative approach, warning that harsh tariffs could drive India closer to China—a strategic blunder for the US in the Indo-Pacific.

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Listeners, today’s biggest headline in India-US trade relations is the historic tariff escalation announced by President Donald Trump’s administration. Starting August 27, US tariffs on Indian goods will surge to 50 percent—doubling from the previously imposed 25 percent, in direct retaliation for India’s ongoing purchases of Russian oil. According to NDTV and reporting from multiple American outlets, Trump’s team accuses India of running what they’ve called a "profiteering scheme" and insists the new punitive tariffs are a response to what the administration sees as India fueling Russia’s war machine with its energy trade.

Peter Navarro, Trump’s trade adviser, has dubbed India the “Maharaj of tariffs” and predicts these steep levies are not just economic measures but political tools. Navarro contends the US is targeting India to send a strong message to both New Delhi and Moscow, especially since India’s percentage of Russian oil imports jumped from just 1 percent before the Ukraine invasion to 35 percent after. The US administration insists these purchases are helping fund Russia’s war, hence the unprecedented tariff rate, one of the highest ever levied on any major US trading partner.

Despite the mounting pressure, India’s government, led by Foreign Minister S Jaishankar, has publicly expressed surprise and frustration. During a recent Moscow visit, Jaishankar reminded the US that Washington itself had encouraged India to buy Russian oil to help stabilize global energy markets after 2022. The Indian position is clear: national interest comes first, and India will not compromise its energy security or economic growth for foreign demands. In fact, India has pointed out that while its Russian oil purchases have increased, China remains the largest consumer of Russian energy, and European LNG imports from Russia far outstrip India’s.

Economic analysts, according to New India Abroad and Stanford economist Neale Mahoney, emphasize that these tariffs are essentially political punishment. Trump’s approach marks a dramatic shift from traditional trade policy, leveraging tariffs as bargaining chips to pressure governments, disrupt supply chains, and ultimately encourage US consumers to buy American-made products. The rate hike is expected to raise prices for US businesses and consumers by about 1.5 percent. Small business owners, especially ethnic grocery store operators who rely on Indian imports, are feeling the pinch from sudden, sharply higher customs bills.

Experts argue that India has become collateral damage in Washington’s campaign to squeeze Russian revenue and pressure Moscow over Ukraine, while China and Turkey—also major Russian customers—escape similar scrutiny. The unpredictability of this tariff regime is causing growing concerns for India’s exporters, and the government is actively exploring new overseas markets while adjusting domestic policies to mitigate the fallout.

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Listeners, here’s your update for August 20, 2025, from India Tariff News and Tracker. The big headline: almost $48.2 billion worth of Indian goods headed to the United States are about to be hit with a massive 50 percent tariff. According to the Economic Times, this new measure involves a 25 percent reciprocal tariff imposed on Indian exports to the US starting August 7, and an additional 25 percent ad valorem duty kicking in from August 27. The Indian government, through Commerce and Industry Minister Jitin Prasada, has stated in Parliament that these tariffs could impact sectors ranging from textiles to high-tech manufacturing and are a direct reaction to recent US actions.

President Donald Trump’s administration rolled out this sweeping set of tariffs earlier this month. The American Bazaar Online reports that Trump first announced a 25 percent levy on Indian goods, then quickly added another 25 percent tied to India’s ongoing purchases of Russian oil. The result is a tariff shock that many analysts believe could set back US-India economic relations by a generation. Both sides had been making progress toward a bilateral trade agreement, but the US trade team has postponed the next round of talks scheduled for this week.

The Times of India highlights that these new tariffs are part of the Trump administration’s broader agenda to pressure Russia over the Ukraine conflict. US press secretary Karoline Leavitt explained that the administration’s intent is to use trade measures against India to apply “secondary pressure” on Moscow. As a result, Indian refiners are now holding back on Russian oil tenders for September, worried about potential penalties and disruptions in the oil supply. This is significant, as Russian oil accounts for about 35 percent of India’s imports.

From a strategic perspective, Trump’s top trade adviser Peter Navarro wrote in the Economic Times that India depends too much on the US as its largest export market, warning that around $87 billion in annual exports are at risk if India does not align its economic policies more closely with Washington’s priorities. The risks here are not just economic; there are broader concerns about whether the US push could push India closer to China, as Indian business leaders quietly explore deals in high-tech sectors with Chinese firms to buffer the shock from US trade measures.

The Diplomat adds that as the US uses tariffs more aggressively as a tool of foreign policy, India is now looking to diversify its trade relationships and reform its domestic economy to weather the storm. During April to July of this year, Indian exports to the US actually rose by over 21 percent year-on-year, but there is widespread concern among policymakers and industry leaders about how long that trend can continue in the face of escalated tariffs and countervailing duties.

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