Trump tariffs: India should 'aggressively pursue' EU trade deal and reforms, says Arvind Panagariya

Prime Minister Narendra Modi held a detailed phone conversation with Russian President Vladimir Putin, during which he reiterated India’s consistent position advocating a peaceful resolution to the ongoing conflict in Ukraine through dialogue and diplomacy. Taking to social media platform X, PM Modi wrote: “Had a very good and detailed conversation with my friend President Putin. I thanked him for sharing the latest developments on Ukraine. We also reviewed the progress in our bilateral agenda and reaffirmed our commitment to further deepen the India-Russia Special and Privileged Strategic Partnership. I look forward to hosting President Putin in India later this year.”

Former diplomat Rakesh Sood quipped that President Trump’s obsession with tariffs and the Nobel Peace Prize may explain the 50% tariff on India. He suggested India's lack of recognition for Trump’s peace claims could be a factor behind the move.

The news reports on India pausing the talks related to defence purchases with the US are false and fabricated. It is clarified that the various cases of procurement are being progressed as per the extant procedures: Ministry of Defence officials.

(Reported by Manish Prasad)

 PM Modi's potential China visit for the SCO summit could mark a major diplomatic shift, as both nations seek renewed cooperation despite past tensions and rising US-India trade friction.

Denmark’s Ambassador to India, Rasmus Abildgaard Kristensen, stressed the need for a rules-based global trade system amid U.S.-India tariff tensions. He defended India’s economic resilience, calling it the world’s fastest-growing economy, not a “dead economy.”

Kerala Finance Minister KN Balagopal has demanded clear assurances from the Centre on countering the U.S.'s steep tariffs on Indian imports. He also criticised the Modi government for bypassing states and Parliament in key trade deals, including one with the UK.

Congress MP Shashi Tharoor responded to the U.S. imposing a 50% tariff on Indian goods, urging India to protect its own interests. He emphasized that if the U.S., a strategic partner, changes its stance, India must consider raising tariffs on American imports to 50% as a countermeasure. Tharoor highlighted the impact on $90 billion trade and stressed that India should not be intimidated or threatened. The U.S. recently imposed an additional 25% tariff citing national security concerns related to India’s imports of Russian oil, a move the Indian government called “unfair and unjustified,” vowing to safeguard national interests.

Asian shares mostly declined, while Tokyo’s Nikkei 225 surged 2.2% after Japan and the US resolved tariff discrepancies on exports. Toyota and Honda led gains, rising 3.5% and 4%, respectively.

Dismissing US President Donald Trump's "dead economy" jibe, 16th Finance Commission Chairman Arvind Panagariya on Friday said the Indian economy is growing at 7 per cent, and more than that in dollar terms. "You don't grow at 7 per cent plus (if the economy is dead), and actually in dollar terms we are growing at more than 7 per cent. I don't know what the definition (of dead economy) means. May be, dead bodies do move," he said.

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 levy 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 that he claims is aimed at bringing jobs back to the US and "Make America Great Again" during his second term as the US President. Click here to read more.

The oil import bill of India could significantly increase to USD 12 billion if the country stops buying Russian crude oil, according to a report by the State Bank of India (SBI). Click here to read. 

Amid ongoing tensions between India and the US, Israeli Prime Minister Benjamin Netanyahu has said that he is ready to help PM Modi and Trump to resolve the issues. "PM Modi and Trump are terrific friends of mine. I would give PM Modi some advice on dealing with Trump, but privately," he said.

Meanwhile, US Secretary of State Marco Rubio has claimed that the United States "directly got involved" when India and Pakistan went to war and that President Donald Trump helped broker the truce between the two nuclear-armed neighbours. Since May 10, either Trump or his officials have repeatedly claimed that the United States played a key role in establishing peace by threatening India and Pakistan over trade deals. Click here to read more.

"If India stopped oil imports from Russia during the rest of FY26, then India's fuel bill might increase by only USD 9 billion," says State Bank of India in a report.

UN Secretary-General Antonio Guterres has said that he 'disheartened' by tariffs imposed by Trump. "Guterres has made clear that he believes that all trade wars are ruinous, and they need to be avoided," his deputy spokesperson Farhan Haq said. "So, this is disheartening news."

According  to Moody's, India's resilient domestic demand will mitigate strain of tariff penalty. "We project that real GDP growth may slow by around 0.3 percentage points compared with our current forecast of 6.3 per cent growth for fiscal 2025-26 (ending March 2026). However, resilient domestic demand and the strength of services sector will mitigate the strain," the report said. 

Congress MP Shashi Tharoor has said that India needs to after its own interests. He also said that India after 2-3 weeks can hold talks with the US and find a way out.  "What is happening is concerning. A country with which we had close relations, and we were working as strategic partners. If that country has changed its behaviour, then India will have to think about many things," he said. 

The US State Department reaffirmed that "India is a strategic partner" and emphasised that the two countries remain engaged in a "full and frank dialogue," even as tensions persist over a continuing tariff dispute following Donald Trump's recent aggressive statements about taxing Indian imports. Click here to read more. 

President Donald Trump unexpectedly summoned reporters to the Oval Office on Thursday to present them with charts that he says show the U.S. economy is solid following a jobs report last week that raised red flags and led to the Republican firing the head of the Bureau of Labor Statistics, reports AP.

Amid row over tariffs imposed by US President Donald Trump on India, National Security Adviser Ajit Doval met Russian President Vladimir Putin on Thursday in Moscow.

NATO advisor Krystle Kaul says, "I want to say that I am extremely disappointed with Donald Trump and this decision. I think placing 50 per cent on India is detrimental to not just trade between the two countries but the overall relation, especially when it has taken a long time to create... I think this is creating a lot of mistrust in the Indian government. I think, this is Donald Trump's way of power play."

White House Trade Adviser Peter Navarro has said that the imposition of tariffs on India is a national security issue, blaming New Delhi for buying Russian oil. "You start with the fact that India is the  maharaja' of tariffs, it's the highest tariffs in the world charging on American products and it's got a high non-tariff barrier so we can't get our products in," he said.

Days after US President Donald Trump imposed tariffs on India for buying Russian oil, the central government has decided to hold the USD 3.6 billion deal with the United States to procure Boeing jets. Click here to read.

Kerala Finance Minister K N Balagopal has said the United States' recent decision to impose a 50 per cent tariff on Indian goods was a "bullying tactic" to control the country's economy. "It is aimed at controlling the Indian economy like the British did during colonisation. We should not surrender to it. We are not a weak country or economy," he said.

Shiv Sena (UBT) MP Priyanka Chaturvedi has said that US President Donald Trump is trying to "arm-twist and bully India", but the central government must ensure that India's interests are protected.

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."

Congress MP Karti Chidambaram has said that there "is a far more sinister reason" for Trump imposing 50 per cent tariffs on India. "...I believe that the Pakistan Army, through its commercial corporations, has a very strong commercial relationship, perhaps with the Trump administration. It's a fact that Field Marshal Munir is going to the US for the second time, which is unprecedented... He is definitely not acting as a friend of India," he told ANI.

US President Donald Trump on Thursday (local time) ruled out trade talks with India until a dispute over tariffs is resolved. This comes days after his administration imposed an additional 25 per cent tariff on Indian products over New Delhi's purchase of Russian oil. Click here to read more.

Amid tariffs imposed by Trump, a top US official has said that India is a "strategic partner" of the United States with whom Washington has engaged "in a full and frank dialogue".

"What I can say in terms of India is, the President has been very clear in terms of the concerns he has regarding the trade imbalance, regarding the concerns he has when it comes to the purchase of Russian oil. You have seen him take action directly on that...India is a strategic partner with whom we engage in a full and frank dialogue. That will continue..." said Principal Deputy Spokesperson for the US Department of State, Tommy Pigott.

The Trump administration has imposed 50 per cent tariffs on India. Earlier, it had imposed a 25 per cent that came into effect on August 7. The additional levy of 25 per cent will take effect from August 27.

Russian President Vladimir Putin will visit India later this year, confirmed National Security Advisor (NSA) Ajit Doval on Thursday. His visit comes at a time when India is facing constant pressure from the United States (US) for buying Russian oil and has imposed 50 per cent tariffs on Indian products, barring a few exceptions. Click here to read more.

Prime Minister Narendra Modi will chair a cabinet meeting at 1 pm today to assess the impact of tariffs imposed by the US.