India Prepares for 50% U.S. Tariffs as Trump Policy Takes Effect

Quick Summary:

• New U.S. Tariffs: Starting August 27, 2025, the U.S. imposes an additional 25% tariffs on Indian imports as part of sanctions linked to India importing oil from Russia.
• Existing Tariffs: This latest move adds to the initial 25% tariff approved by President Trump on July 31, bringing total tariffs on many goods to 50%.
• Impact on indian Exports:

– Federation of Indian Export Organisations estimates that around $47 billion worth of exports will face pricing disadvantages.
– Global Trade Research Initiative (GTRI) predicts a severe hit, with up to $60.2 billion facing higher tariffs across sectors like textiles,gems and jewelry,seafood,furniture.

• Indian Response:

– Prime Minister Modi emphasizes a “Swadeshi” push urging citizens to be “vocal for local” and prioritize domestic goods.
– Reserve Bank Governor Sanjay Malhotra assures sectoral support amid tariff impact.

Indian Opinion Analysis:

The escalation in U.S. tariffs against India highlights complexities in global trade intersecting geopolitical decisions such as oil imports from Russia.Economically vulnerable export-driven industries-textiles and gems-may take a important blow due to pricing disadvantages compared with regional competitors like China and Vietnam.

India’s “Swadeshi” campaign presents a strategic pivot toward self-reliance but is unlikely to replace lost revenue streams from high-value export segments quickly. The Reserve Bank’s readiness for intervention indicates acknowledgment of potential macroeconomic ripples domestically.

Diplomatically silent thus far beyond labeling the measures “unfair,” India’s restraint may reflect cautious calculation against further escalation while exploring long-term diversification away from dependency on key markets like the U.S.

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