Donald Trump Tariffs News Highlights: India's Russian oil imports set to rise in September despite US pressure

Minister of State for External Affairs Kirti Vardhan Singh has called the Trump administration's move to impose a 50 per cent tariff on Indian goods "wrong and unjustified".
Speaking on the issue, Singh said, "What America did is very wrong. It is unjustified. The reasons they have given and the allegations they have made against us are entirely wrong. There are many countries that import oil from countries that America objects to. But did America implement such tariffs on those countries?"

He further assured the public, stating, "Our country's economy is strong. Our government is doing its best to ensure that its impact does not affect our countrymen at all."

Amid growing signs pointing to US President Donald Trump bringing about a generational - and adversarial - shift in American policy towards India, New Delhi is finding broad support from the Western intelligentsia in its struggle to resist the US bullying.

"The conflict in Ukraine is Putin's war, not 'Modi's war', and anyone who thinks this patently ridiculous formulation is going to provide leverage with New Delhi is beyond delusional. At this point, this is sabotage, pure and simple," Evan Feigenbaum, a former state department official now with Carnegie Endowment, said on Wednesday, referring to Navarro's characterisation that the Russia-Ukraine conflict is "Modi's war".

Indian equity benchmarks slumped on Thursday after US tariffs on Indian exports doubled to 50%. Nifty50 closed at 24,500, down 211 points, while Sensex ended 706 points lower at 80,080. Weak global cues and persistent foreign fund outflows added to the pressure, deepening investor concerns across sectors.

India plans to raise Russian oil imports by 10–20% in September, even as Donald Trump’s administration doubles tariffs on Indian exports. Refiners say discounted crude from Moscow remains vital to meet demand. New Delhi is pursuing talks with Washington, but officials signal no sharp cut in Russian purchases is likely.

Persisting uncertainties related to the US trade policies pose downside risk to the overall demand in the Indian economy while the inflation outlook for the near term has become more benign than anticipated earlier, RBI said in its latest bulletin on Thursday.

In the August bulletin, the Reserve Bank of India (RBI) also said that India's sovereign rating upgrade by S&P bodes well for capital inflows and sovereign yields, going forward.

The US has imposed a steep 50% tariff on Indian goods.

According to the central bank, favourable rainfall and temperature conditions bode well for the kharif agriculture season and an increase in real rural wages may support rural demand in the second half of the financial year.

Andhra Pradesh Chambers of Commerce and Industry Federation appealed to the Centre to protect shrimp farmers and exporters with policy and financial interventions in the face of 50 percent tariffs and other taxes slapped by the US on Indian imports.

The president of the chambers, P Bhaskar Rao, on Thursday said that the sudden spike in US tariffs has put the livelihood of 2.8 crore people who engage in aquaculture and allied sectors at risk.

"Unless urgent policy and financial interventions are made, India risks losing global competitiveness in seafood exports. We strongly urge the Union government to act swiftly in coordination with the state governments to safeguard this vital sector," said Rao in a press release.

According to the chambers, India is the second largest seafood exporter globally, accounting for exports worth Rs 60,524 crore or $7.3 billion in FY24, while the US alone imported 25% of this quantum.

The Centre’s move to extend the import duty exemption on cotton until 31 December 2025 is set to strengthen India’s position in global textile markets, reviving orders for small and medium enterprises as well as export-oriented units, government said on Thursday.

The announcement comes at a critical time, as the US imposes steep 50% tariffs on Indian goods, with America being the largest export destination for the country’s textile and apparel industry.

"Affordable, high-quality cotton strengthens India's position in export markets, reviving orders for small and medium enterprises as well as export-oriented units. The textile-apparel value chain employs over 45 million people, and stable cotton supply is crucial to prevent job losses and encourage industry growth," the textile ministry said.

Finance minister Nirmala Sitharaman on Thursday chaired an inter-ministerial meeting to discuss potential measures to support exporters in the wake of rising US tariffs, as per sources cited by PTI.

Senior officials from the ministries of finance, commerce, textiles, MSMEs, chemicals and fisheries were in attendance, they added.

The meeting followed the Trump administration’s decision to impose a steep 50% tariff on most Indian goods entering the US from August 27, with only a few exemptions.

Exporters warned that labour-intensive sectors such as shrimp, chemicals, textiles, leather and footwear, and gems and jewellery would be particularly affected, as their products risk losing competitiveness in the American market to countries like Bangladesh, Vietnam and Thailand, which face lower tariffs.

Sources said the minister sought feedback from senior officials and discussed various support measures that could be considered for exporters.

Earlier, the Federation of Indian Export Organisations (FIEO) said Sitharaman had assured them that the government “stands firmly with them in this challenging time” and is committed to addressing their concerns, while exploring every possible avenue to safeguard their interests amidst high US tariffs.

Container volume growth this fiscal is estimated to moderate by 100-150 bps due to the impact of the US tariff on sectors like home textiles, gems, shrimp, engineering components, and speciality chemicals, a report said on Thursday.

The volumes are expected to log 8 per cent growth at around 380 million metric tonnes, supported by capacity expansion, rising transhipment activity and slated completion of the entire Western Dedicated Freight Corridor, ratings agency CareEdge said.

Nonetheless, rising insurance costs, shipping rates owing to volatility in the Shanghai Freight Rate Index (SCFI) and transit times are weighing on the sector's growth trajectory, it stated.

"The Indian ports sector continues to navigate a complex global landscape marked by geopolitical conflicts and trade disruptions driven by US tariffs. The United States accounts for only about 5 per cent of India's sea-based trade (excluding electronics)," said Maulesh Desai, Director at CareEdge Ratings.

Russian oil exports to India are expected to increase in September, according to market dealers, as New Delhi continues to resist US punitive tariffs aimed at curbing the trade and pressing Moscow towards a peace deal with Ukraine, Reuters reported.

Since Western sanctions forced Russia to redirect supplies after its 2022 invasion of Ukraine, India has emerged as the largest buyer of Russian crude. The move has enabled Indian refiners to secure cheaper oil, cushioning costs at a time of volatile global markets.

US President has often targetted India’s purchases of Russian oil, New Delhi, however maintains that it is relying on dialogue to resolve the dispute over Trump’s additional duties.

The roposed reforms to the Goods and Services Tax (GST), which would lower tax rates on items widely used by the common man, is expected to boost consumption and could offset the impact of steep US tariffs, BMI, a Fitch Solutions company, said on Thursday.

Since its launch, GST has become the second-largest source of fiscal revenue after income tax, contributing about 30% of total revenue and 2.5% of GDP in FY2024-25.

However, BMI noted that the fiscal impact of the reforms is likely to be mild.

At present, goods and services fall under a four-tier structure with tax rates ranging from 5% to 28%. The Centre’s proposed reform suggests bringing most goods under two slabs, 5% or 18%. Under the plan, consumer durables such as washing machines, air conditioners and refrigerators would be charged at lower rates.

The US economy bounced back this spring after a weak start to the year, recovering from the impact of US President Donald Trump’s trade wars.

In a revised estimate released on Thursday, the US commerce department said gross domestic product (GDP) grew at an annual rate of 3.3% between April and June, compared with a 0.5% contraction in the first quarter of 2025. The initial estimate for second-quarter growth had put the figure at 3%.

The first-quarter decline, the first in three years, was largely driven by a sharp rise in imports as companies rushed to stock up on foreign goods ahead of Trump’s tariffs. That surge reversed in the April-June period, with imports falling 29.8%, which alone added more than five percentage points to second-quarter growth.

The Commerce Department also noted that consumer spending and private investment were slightly stronger than previously reported. Consumer spending, which makes up about 70% of GDP, rose at an annual rate of 1.6%, a modest improvement compared with 0.5% in the first quarter and above the earlier estimate of 1.4% for the second.

The government is working on extending support measures for exporters such as rollout of export promotion mission, and moratorium on loans to cushion them from the impact of US's 50% tariffs on Indian goods, an official said on Thursday.

The government official also said this is a wake-up call and opportunity to diversify the export basket.

Exporters have sought help at the liquidity front and these suggestions are under consideration, the official added.

"The government is seized of issues being faced by exporters, and positive work is going on to help them," the official said adding diversification of exports, implementation of new free trade agreements (FTAs), rolling out of support measures and growing domestic market will help provide cushion to the industry from the impact of US tariffs.

The other measures which are under consideration include emergency credit line guarantee scheme for MSME exporters in tariff-hit sectors, moratorium on export loans to allow exporters operational space without asset downgrades, and extension of export realisation period to ease cash flow challenges caused by longer payment cycles.

"The government is trying to speed up the rollout of the export promotion mission and expediting the e-commerce export hub scheme," the official said.

India’s natural diamond polishing industry is staring at a sharp 28–30% revenue drop to around $12.5 billion this financial year, as the United States enforces steep 50% tariffs on Indian exports, a report said on Thursday.

The latest blow comes after Washington imposed an additional 25% duty on Indian goods entering the US market from Wednesday, penalising New Delhi for buying Russian oil.

In 2024–25, the industry had earned close to $16 billion, according to Crisil Ratings. But the sector is already under strain, having witnessed a 40 per cent contraction over the past three years due to falling prices, weak sales in the US and China, and growing competition from lab-grown diamonds.

Crisil warned that the 50% tariff will make exports to America particularly challenging. The industry, it said, runs on thin margins, making it hard to absorb the higher duty. At the same time, with global demand already declining, companies will struggle to pass on the extra costs to buyers.

Commerce minister said that the 50% tariffs imposed on India will have an impact in the short term, however, it will not be a long-term loss.

The ministry said, "It is an understood thing that 50% tariffs are going to impact trade. There will be an impact on the textile, chemicals and machinery sectors in the short run, but it will not be a very long-term loss. The industry is worried; they have been sending representations. The industry has pointed out that in the short run, their orders will face slow down, they will face a liquidity crunch. They will be under financial strain to run their operation. They have been writing to the government to help them meet this liquidity crunch in the short run. Positive work is underway to determine the best way to implement their suggestions. Their suggestions are on the govt's agenda. We are trying to expedite the rollout of the Export Promotion Mission (EPM) as soon as possible, so that it will give some impetus and support to the industry. We need to create resilient supply chains, whether these are export supply chains or import supply chains. Every challenge or crisis, is a new opportunity. So it's a wake up call for industry, for governments, everybody, to see how we can diversify our exports."

Government is hopeful of getting back on table soon for proposed India-US bilateral trade agreement. However, new dates yet to be finalised, an official told PTI.

With the 50% US tariffs taking effect, nearly a quarter of India’s textile exports could face a serious setback over the next six months, experts warned on Thursday. America remains the biggest market for Indian apparel, and exporters are already struggling with order cancellations.

Amid this, the government has extended duty-free import of cotton by three months, till December 31, a move expected to provide some relief to the domestic textile industry. Exporters hope this will help them cushion the blow of steep US tariffs by adjusting their strategies and tapping alternative markets through India’s existing free trade agreements (FTAs).

“We are looking at a hit of at least 20-25% for the next six months, if I am considering some amount of re-orientation to be done because otherwise the figure is 28% of exports, largely apparel and made-ups,” said Confederation of Indian Textile Industry (CITI) Secretary General Chandrima Chatterjee.

The finance ministry had first granted duty exemption on cotton imports from August 19 to September 30. On Thursday, the relief measure was extended till December 31 to support textile exporters grappling with higher tariffs in the US.

Switzerland’s economy is expected to grow at a weaker pace next year following the hefty import tariffs announced by US President Donald Trump, the economy ministry said on Thursday.

Trump caught Switzerland off guard on 1 August when he declared that incoming Swiss goods would face a 39% tariff, one of the steepest levies imposed on dozens of countries.

The State Secretariat for Economic Affairs (SECO) confirmed the outlook had now turned gloomier.

“An updated economic scenario from SECO shows that, as a result of higher US import tariffs, the Swiss economy is likely to grow more slowly than previously expected, particularly in 2026,” the ministry said in a statement.

In June, the government’s expert group on business cycles had already projected sluggish growth, forecasting 1.3% this year and 1.2% in 2026 – both well below average.

India must unite to tackle the 50 percent punitive US tariffs on Indian products and resist any form of bullying, Maruti Suzuki India Chairman R C Bhargava said on Thursday.

"It is our duty as Indians to do our very best to promote and maintain our dignity and respect and not give in to any kind of bullying in this matter... the nation has to stand united," Bhargava said at the company’s 44th Annual General Meeting.

Bhargava added that the tariffs have caused upheaval across global markets. "You're all aware of the global uncertainty that has been caused in recent months. President Trump has in many ways, forced nations to rethink conventional policies and relationships. Personal use of tariffs in diplomacy is being seen for the first time," he told shareholders.

Aam Aadmi Party (AAP) national convener Arvind Kejriwal on Thursday urged the Centre to impose higher tariffs on US imports, claiming that the country would fully back such a move.

Kejriwal accused the BJP-led government of waiving the 11 per cent duty on US cotton imports, warning that the decision could hurt local farmers, he told reporters at a press conference.

"Other countries did not bow down. They imposed higher tariffs. We should also impose higher tariffs. If the US is imposing 50 per cent tariffs, we should double the tariffs to 100 per cent. The whole country will support this decision. No country can afford to offend India. We are a nation of 140 crore people," he said, as cited by PTI.

Back in March, as American President Donald Trump intensified his trade conflict with China, the Chinese leadership initiated a discreet diplomatic approach towards India.

President Xi Jinping sent correspondence to Indian President Droupadi Murmu to explore possibilities of strengthening bilateral relations, an Indian official with knowledge of the situation told Bloomberg. The communication voiced concerns regarding any US agreements that could potentially affect Chinese interests and identified a regional administrator to lead Beijing's initiatives, the source indicated, noting that the information was conveyed to Prime Minister Narendra Modi.

Tamil Nadu chief minister MK Stalin on Thursday reiterated his calls to the Centre for urgent relief and structural reforms to protect industries and workers, as the US tariff hike to 50% has significantly impacted the state’s exports, particularly Tiruppur’s textile hub.

“The US tariff hike to 50% has hit Tamil Nadu's exports hard, especially Tiruppur's textile hub, causing a trade impact of nearly Rs. 3,000 crore and putting thousands of jobs at risk,” Stalin said in a post on X.

“I reiterate my demands to the Union Government for immediate relief and structural reforms to safeguard our industries and workers,” he added.

Earlier, on August 16, Stalin had written to Prime Minister Narendra Modi, highlighting the severe impact of the US tariffs on Tamil Nadu and warning of potential layoffs in export-oriented sectors. He urged the Centre to take immediate measures, including a special financial relief package to support exporters, reported PTI.

Former NITI Aayog CEO and India’s ex-G20 Sherpa Amitabh Kant has described the latest US tariff measures under President Donald Trump as a “wake-up call” for India.

“Trump's tariffs must be a wake-up call for India. The irony is striking: the U.S. is actively negotiating with Russia and China, the latter being the largest buyer of Russian oil, yet chooses to target India with tariffs instead. Let us be clear, this is not about Russian oil. It is about India's energy security and strategic autonomy, which we should never compromise,” Kant said through social media.

He emphasised that India must remain steadfast in protecting its strategic interests while leveraging the situation to push through essential reforms.
“India has, on numerous occasions, refused to yield to global pressure. This moment should be no different. Rather than intimidate us, these global headwinds must galvanise India into bold, once-in-a-generation reforms, while also diversifying our export markets to secure long-term growth and resilience,” Kant added.

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."

“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.

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.

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.

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.

"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.

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..."

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.

"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."

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.

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

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.

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.

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.

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.

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.

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.