The India-US tariffs row continues to grab headlines and shake markets globally, with Donald Trump refusing to bow down on his tariff tirade by announcing an additional 25 per cent levies on Indian imports earlier this week, bringing it to a total of 50 per cent. The move is part of an aggressive economic policy pushed by Trump to what he claims is aimed at bringing jobs back to the US and "Make America Great Again" during his second term as the US president.
Trump also cited the imposition of tariffs on New Delhi because of its trade with Russia, mainly in crude oil. The US president claims that the continued trade is supporting Moscow in its war with Ukraine. India, on the other hand, has refused to budge to Trump's pressure and says its trade decisions are in its people and economy's welfare.
Prime Minister Narendra Modi will chair a key high-level Cabinet meeting on Friday at 1 pm to review the implications of the steep tariff hike recently imposed by the United States on Indian exports.
Here are the top udpates till now on the India-US tariffs issue
How India can offset US President Donald Trump's 50% tariffs
In an effort to broaden its export base, the Government of India is planning a Rs 20,000 crore export promotion mission, according to a report said. The initiative is aimed at shielding Indian exporters from global trade uncertainties.
The mission is a collaborative effort involving the Ministries of Commerce and Industry, MSME, and Finance. It is expected to be finalised by August and rolled out by September. Read more
India pauses $3 billion deal with Boeing
The Indian government has put on hold a USD 3.6 billion deal with the United States to procure Boeing jets, according to a media report. Originally approved by the US State Department in 2021, the deal involved the purchase of six additional Boeing P-8I maritime patrol aircraft for USD 2.42 billion. However, the cost reportedly surged due to supply chain disruptions and tariffs introduced by President Trump.
Citing defence sources, The Financial Express reported that India has paused the deal following a nearly 50 per cent increase in project costs. The Defence Ministry has decided to undertake a "strategic reassessment," with factors such as the price hike, evolving geopolitical dynamics, and the need to preserve strategic autonomy expected to influence the final decision. Read more
Trump rules out trade talks with India
Donald Trump has ruled out the possibility of trade talks with India until the ongoing tariff dispute is settled. This statement follows his administration’s decision to impose an additional 25 per cent tariff on Indian goods in response to New Delhi’s continued purchase of Russian oil.
When asked by news agency ANI if he anticipated trade negotiations resuming between the two countries, Trump said, “No, not until we get it resolved.” Read more
Trump's tariff tirade mayfuel Russia-India-China troika revival
Russian President Vladimir Putin is set to visit India later this month, National Security Advisor Ajit Doval confirmed on Thursday. His visit comes amid growing US pressure on India over its continued purchase of Russian oil and the recent imposition of 50 per cent tariffs on Indian goods, with limited exemptions.
The announcement follows confirmation of Prime Minister Narendra Modi’s upcoming visit to Tianjin, China, from August 31 to September 1 for the Shanghai Cooperation Organisation (SCO) Summit, where he is expected to meet Chinese President Xi Jinping.
The back-to-back visits by Putin and Modi raise the possibility of reviving the Russia-India-China (RIC) Troika at a time when the US is intensifying pressure on both New Delhi and Beijing over their ties with Moscow. Read More
US State Department calls India strategic partner despite Trump's tariffs
The US State Department has reiterated that "India is a strategic partner" and stressed that both nations remain engaged in a "full and frank dialogue," despite ongoing tensions linked to the recent tariff dispute triggered by Donald Trump's strong remarks on taxing Indian imports.
When asked whether China and other BRICS nations are leading a coordinated effort to challenge US trade policies, the department responded that its dialogue with India "will continue." Read more
US Senator slams Trump over 50 per cent levy on India
US Senator Gregory Meeks has hit out at US President Donald Trump for imposing tariffs on India. In an 'X' post, he said: "We have deep strategic, economic, and people-to-people ties. Concerns should be addressed in a mutually respectful way consistent with our democratic values." Read more
