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

India is accelerating policy reforms, including GST restructuring, as it prepares for 50% US tariffs on its exports starting Wednesday. The Modi government is responding to President Donald Trump's tariff threats since July by addressing complex reforms that businesses and economists have consistently identified as barriers to investment.

"Your usual policy levers are not going to work very well in the current environment," said Dhiraj Nim, an economist at Australia & New Zealand Banking Group Ltd. "So, the only way out is for you to undertake those slightly tougher reforms,” he said according to Bloomberg.

US President Donald Trump, in a bilateral discussion with South Korean President Lee Jae-myung on Monday (local time), expressed his intention to maintain positive relations with China whilst clarifying his position on potential diplomatic actions.

"We are going to have a great relationship with China...They have some cards. We have incredible cards, but I don't want to play those cards. If I play those cards, that would destroy China. I am not going to play those cards," Trump stated during the meeting.

Prime Minister Narendra Modi on Monday expressed his firm stance on defending the interests of farmers, cattle-rearers and small-scale industries on Monday, stating "pressure on us may increase, but we will bear it", as the United States prepares to implement 50 per cent tariffs on Indian goods.

The Prime Minister reaffirmed his commitment, saying “For Modi, interests of farmers, cattle rearers and small scale industries are paramount. Pressure on us may increase, but we will bear it all", with the August 27 deadline for increased US tariffs approaching.

He advocated strongly for swadeshi products' adoption.

The Prime Minister advised, "All of us should follow the mantra of buying only 'made in India' goods. Businessmen should keep a big board outside their establishments, saying they sell only 'swadeshi' goods".

He concluded by acknowledging public support, stating "I think I am fortunate to get the love and blessings of lakhs of people".

The White House spokesperson Karoline Leavitt stated earlier that President Trump implemented sanctions against India with the aim of resolving the Russia-Ukraine conflict.

The US Treasury chief Scott Bessent has alleged that India is making unfair profits through the resale of Russian oil.

India has responded by declaring the US-imposed tariffs as lacking justification and being unreasonable.

New Delhi has indicated that it will undertake all required steps to protect its sovereign interests and economic security, as would any significant economic power.

The US has released a draft notification outlining its strategy to enforce an additional 25 per cent duty on products from India, following President Donald Trump's earlier declaration, set to begin from August 27.

According to the draft order issued on Monday by the Department of Homeland Security, the heightened duties will affect Indian products that are "entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time on August 27, 2025".

Trump declared on August 7 that tariffs on Indian goods would double to 50 per cent due to India's Russian crude oil purchases, whilst allowing 21 days for negotiating terms.

This follows the previous 25 per cent tariff announced in late July that became operational from August 7.

The order states: "Products of India, except those set forth in section 3 of Executive Order 14329, that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 27, 2025, will be subject to the additional ad valorem rate of duty."

Indian goods will not face the new 50 per cent tariff if they were "already loaded on a ship and in transit to the US before 12:01 am (EDT) on August 27, 2025, provided they are cleared for use in the country or taken out of a warehouse for consumption before 12:01 am (EDT) on September 17, 2025, and the importer certifies this to US Customs by declaring the special code HTSUS 9903.01.85".