US-India Trade War: US President Donald Trump has imposed a 50% tariff on Indian goods, half of which is a “punishment” for purchasing oil from Russia. The move will impact about 55% of India’s exports to the US. The Indian government has called the decision “unfair and unjustified,” assuring that it will take all necessary steps to safeguard national interests.
Heavy Duties Imposed in Two Phases
The first 25% tariff came into effect on August 7, while the remaining 25% will be enforced from August 27. Trump claims the move will be a “big blow” to Russia’s economy. India, however, maintains that buying oil from Russia is part of its energy policy and will not be altered under external pressure.
Trump Targets India, Pauses Tariffs for China
While Trump doubled tariffs on India, he extended the tariff truce with China until November. This has led to speculation that Washington is applying heavier pressure on New Delhi while giving Beijing temporary relief. Analysts believe this signals a more politically charged trade stance from the US, making India’s position more challenging both economically and strategically.
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India’s Possible Retaliatory Action
Sources suggest that India may impose counter-tariffs on US steel, aluminium, and certain other goods. This move would be in response to the 50% duty imposed by Washington in June. India aims to send a clear message that it will not succumb to pressure and will protect the interests of its industries and exporters.
Domestic Political Reactions
Defence Minister Rajnath Singh indirectly targeted Trump, saying, “Some people are jealous of India’s rapid growth.” Andhra Pradesh CM N. Chandrababu Naidu dismissed Trump’s “dead economy” remark, stating India is the world’s fastest-growing economy. Congress leader Ashok Gehlot called PM Modi a “weak leader” for not directly responding to Trump’s repeated provocations against India.
Impact on States and Economic Concerns
Kerala CM Pinarayi Vijayan warned that the tariffs will heavily affect the state’s economy, especially exports of cashews, rice, vegetables, and seafood. Maharashtra minister Nitesh Rane expressed concern over shrimp exports but saw it as an opportunity to strengthen the domestic seafood market. The US is currently a major importer of Kerala’s agricultural and marine products.
International Reactions
Israeli PM Benjamin Netanyahu urged both India and the US to resolve the dispute through dialogue. Brazilian President Lula spoke with PM Modi, Russian President Putin, and Chinese President Xi Jinping on the matter. Sri Lankan lawmakers also backed India, calling the US tariffs “unfair and selective,” and reminding that India had supported Sri Lanka during its worst economic crisis.
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Expert Opinions
Analysts believe that if a ceasefire between Russia and Ukraine is achieved after Trump’s upcoming meeting with Putin, the pressure on India may ease. Others stress the need for India to diversify its export markets to reduce reliance on any single country. For now, the tariff row is straining India-US ties while also testing India’s global trade strategy.
Economic Impact and the Road Ahead
US-India Tariff Row 2025: According to Bloomberg, these tariffs could reduce India’s GDP by up to 1%. Sectors like pharmaceuticals and electronics are currently unaffected, but experts warn they could be targeted in the future. The challenge for India is to protect its economic interests while maintaining a strong position on the global stage during ongoing trade tensions.
Conclusion: US-India Trade War 2025
The US-India tariff row is not just about trade — it involves geopolitical, energy, and diplomatic dimensions. The coming weeks, including the Trump-Putin meeting and India’s retaliatory moves, will determine whether tensions ease or escalate further. This dispute could shape the next phase of India-US relations and impact the global trade landscape.
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