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

India's crude oil trade with Russia has become a contentious issue in trade negotiations with the United States, as the Trump administration has imposed an additional 25% tariff starting today. Despite this, Indian refinery executives have expressed that the procurement of Russian crude is expected to continue, as the Indian government remains resolute against US pressure. Indian refineries are maintaining their Russian oil imports, with officials indicating that there is little chance of the government ceasing crude trade, even in the face of US tariffs.

The additional 25 percent tariff imposed by former US President Donald Trump on Indian goods, in response to New Delhi's purchases of Russian oil, has now taken effect. This increase raises the total tariff on these exports to 50 percent. Initially, Trump announced a 25 percent reciprocal tariff on Indian goods starting August 7, alongside similar measures for approximately 70 other countries. Subsequently, he doubled the tariffs on Indian goods to 50 percent, citing India's imports of Russian crude oil, but provided a 21-day period for negotiations.

The recent US decision to impose steep tariffs on Indian goods could boomerang on the American economy by pushing up inflation and shaving growth, according to an analysis by the State Bank of India (SBI).

The report, quoted by ANI, estimated that US GDP could be reduced by 40–50 basis points as a result of the new duties, while inflationary pressures were likely to rise due to higher input costs and a weaker dollar. “We believe that US tariffs are likely to affect US GDP by 40-50 bps along with higher input cost inflation,” the report noted.

Import-dependent industries such as electronics, automobiles and consumer durables were already feeling the pinch. The SBI analysis projected that inflation in the US will stay above the Federal Reserve’s 2 per cent target through 2026, driven by tariff pass-through and exchange rate movements.

India faces a 50% tariff on goods exported to the US, effective today, as imposed by the Donald Trump administration. The tariffs will impact Rs 4,00,060 crore worth of Indian export merchandise to America.

Meanwhile, as trade talks between the two nations continue to stall, the govt is exploring multiple ways to minimise the effects of the punitive tariffs. Discussions are ongoing between India and the US regarding a bilateral trade agreement (BTA). The US delegation's visit to India, planned for August 25, has been deferred.

In his statement, Rabuka said, "...The recent announcements of the tariffs (by the United States)...I told him (PM Modi) the other day, somebody is not very happy with you, but then you are big enough to weather those discomforts," as quoted by ANI.

Indian exporters are scrambling after Trump’s 50 per cent tariffs. Big players like Dawar Group, Farida Group and AEPC’s Sudhir Sekhri are offering deep discounts to retain US buyers, while industry councils urge “sell at cost” strategies. Others are scouting new markets — Dawar in Russia and Latin America, Corona Steel in Africa, and jewellery exporters in the domestic market — though most admit options are limited.

Exporters rushed shipments before the deadline, from Bharat Forge and Gokaldas to shrimp and gems exporters, with even T-shirts airlifted to beat higher duties. But orders from the US are now uncertain, buyers elsewhere are driving hard bargains, and early stress is showing — Tirupur dyeing units cutting shifts, shrimp units halting overtime, and jewellery exporters shedding contract workers.

With larger firms competing for alternative markets, smaller exporters may be squeezed further. The government is trying to connect exporters with global chains and banking on trade deals with the UK and EU, but for now the outlook remains bleak unless tariffs ease soon.

US President Donald Trump has once again claimed that he personally intervened to stop a nuclear confrontation between India and Pakistan during heightened tensions between the two neighbours, while Operation Sindoor was underway in response to the Pahalgam terror attack, earlier this year. Speaking during a cabinet meeting at the White House on Wednesday, Trump said he threatened India with steep tariffs and refused to proceed with a trade deal unless the conflict was resolved. “I am talking to a very terrific man, Prime Minister of India, Narendra Modi. I said what's going on with you and Pakistan... The hatred was tremendous. This has been going on for a hell of a long time, like, sometimes with different names for hundreds of years,” Trump said.

The United States declared what is effectively a limited trade war on India, notifying a 50% tariff (25% taxes plus 25% penalty) on most goods imports from India. Issued by the Department of Homeland Security, the notification stated the tariffs are in response to "threats to the United States by the govt of the Russian Federation," and it is implementing a presidential order that had determined it is "necessary and appropriate" to impose tariffs on India, "which is directly or indirectly importing Russian Federation oil." They are set to into effect at 12.01 am EST (9.30am (IST)).