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The Trump administration has moved ahead with its threat, imposing an additional 25% tariff on Indian imports , doubling existing duties to 50%.
This is the second round of tariffs in less than a month. Trump had earlier announced a 25% levy on Indian goods ahead of the August 1 reciprocal tariff deadline. The latest move doubles down on pressure, coming after Trump accused India of buying Russian crude oil and “funding the war in Ukraine.”
What’s going on: the two countries were set to hold another round of negotiations on August 25. Those talks have now been postponed indefinitely.
For India, the tariffs pose a significant challenge for exporters in sectors ranging from engineering goods to textiles, chemicals, and auto components. For US buyers, the duties mean higher costs on Indian imports, adding pressure on supply chains already stretched by geopolitical frictions.
Zoom out: India has so far reacted cautiously to the tariff escalation, calling for dialogue. Officials have emphasised that the trade relationship with the US is “strategic and mutually beneficial” and stressed the need to resolve disputes through talks.
New Delhi has also highlighted that Indian exporters and American consumers alike would bear the brunt of higher duties. At the same time, India is quietly weighing retaliatory measures but is likely to hold back in the near term, keeping the door open for negotiations.
