Trump India Tariffs 2025 Live Updates: JP Morgan’s Managing Director and Chief India Economist, Sajjid Chinoy, told CNBC-TV18 that India can still compete if US tariffs are at 25%. But at 50%, Indian exports will lose their competitiveness. He said around 1% of India’s GDP is directly at risk from the 50% tariff, and the indirect impact could be even bigger.
India-US trade talks only to resume if…
The trade talks between India and US will are unlikely to resume until the additional 25% penalty due to Russian oil purchase is addressed by the US, a senior official from the Commerce and Industry Ministry told The Indian Express. The US was supposed to send a delegation to New Delhi on August 25 to continue the discussions, but the talks were paused after Trump called India’s purchase of oil from Russia a deal breaker. Trump then announced an extra 25% tariff, in addition to the existing reciprocal 25% tariff. As a result, Indian exports to the US are now facing a 50% tariff, which came into effect on Wednesday.
Tariffs hit exporters, relief measures under review
With the new tariffs hurting exports to the US, the Commerce and Industry Ministry is examining ways to ease the financial strain on Indian industries. According to the ministry sources, exporters now expect a slowdown in US orders, which could trigger a liquidity crunch, IE reported. Sectors like textiles and chemicals are expected to face serious challenges since many companies depend heavily on the American market. Industry groups have asked for relief measures similar to those provided during the Covid-19 pandemic. The government is reviewing these requests and is working on possible solutions.
The official said that any relief will not take the form of subsidies. Instead, the government is considering steps that can help industries continue operations in a sustainable way. A package could be announced, but the focus will be on long-term measures rather than short-term fixes.
Exporters meet FM Nirmala Sitharaman – Will Centre launch MEIS?
A delegation from the Federation of Indian Export Organisations (FIEO) met Finance Minister Nirmala Sitharaman on Thursday to present exporters’ concerns. The delegation highlighted the impact of higher tariffs on competitiveness, jobs, and market access, and urged the government to act quickly. FIEO said the Finance Minister assured exporters that the government fully supports them in this difficult time.
An industry source revealed that exporters have asked the government to relaunch the Merchandise Exports from India Scheme (MEIS), which was discontinued because it was not compliant with World Trade Organisation rules. However, with the WTO now largely ineffective, industry leaders believe a scheme similar to MEIS could work as a short-term solution. They proposed that both the government and exporters share the tariff burden by absorbing 15% each, which would reduce the effective tariff to 20%, closer to what other countries face.
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Trump tariff on India Live Updates: CEA Nageswaran sees 'silver lining' to offset tariff woes
Chief Economic Adviser V Anantha Nageswaran said on Saturday that he sees several "silver linings" in the Indian economy that offset the impact of external demand on the country due to US tariffs. He backed his argument by stating that the measures taken by the government, such as direct tax cuts, forthcoming GST tax structure reforms, and the employment-linked incentives, among others, are supportive of the overall economy.
"There is an emphasis given to structural reforms such as deregulation, which involve the ease of doing business, ease of being honest, etc. So I think all these factors will actually reduce the uncertainty related to the tariff," CEA Nageswaran told ANI.
Trump tariff on India Live Updates: RBI Governor says India to become world's third largest economy soon
Reserve Bank of India Governor Sanjay Malhotra on Saturday said India will become the world's third largest economy soon, and credited the Pradhan Mantri Jan Dhan Yojana for boosting the country's growth. His remark came at a time when India's GDP grew 7.8% in the April-June quarter of the current fiscal, the highest in five quarters before the imposition of heavy tariff on the country by the United States.
Trump tariff on India Live Updates: CEA Nageswaran on GDP growth
Chief Economic Advisor V Anantha Nageswaran opined on Saturday that the first quarter numbers were "definitely better than expected".
“A lot of people attributed the fact that the GDP deflator was much weaker this year compared to last year… In some sense, the GDP deflator being on the weaker side was a good thing and was not an unknown aspect. That was factored into the consensus expectations of Indian economists in the private sector. Yet the GDP growth number for the first quarter in the current fiscal year was much better than expected…I think the underlying resilience of the Indian economy continued its momentum in the second fiscal quarter as well," he told PTI.
Trump tariff on India Live Updates: 'No permanent friends or enemies' says Rajnath Singh
Defence Minister Rajnath Singh insisted on Saturday that rhere were "no permanent friends or enemies --- only permanent interests". The remarks were made during the NDTV Defence Summit and also saw the minister highlighting recent developments, such as the making of warships.
Trump tariff on India Live Updates: 'Govt should allocate Rs 2,500 cr for exporters'
Economic think tank GTRI has expressed concern over the decline in export promotion funding --- urging the government to consider allocating Rs 2,500 crore for exporters to participate in global exhibitions under the Market Access Initiative. It said that exporters had missed critical opportunities between April and August to participate in overseas fairs.
"With a modest budget of only Rs 250 crore in past years, the scheme was already too small for a USD 440 plus billion export economy. It must be revived with a scaled-up budget of Rs 2,500 crore annually, with funds released at least a year in advance to allow Indian firms to secure high-visibility slots at global fairs," said Global Trade Research Initiative founder Ajay Srivastava.
He also called for resumption of Interest Equalisation Scheme (IES), immediate roll out of the Export Promotion Mission, and E-commerce Export Hubs to boost exports amid 50% tariffs imposed by the US on Indian goods.
Trump tariff on India Live Updates: Indian economy to grow 6.5% in FY26, BoB report says...
The Indian economy is expected to expand by around 6.5% in FY26 --- reflecting steady domestic momentum --- said the Bank of Baroda. The report also noted that the escalating concerns over ongoing tariff negotiations pose a downside risk, with potential adverse effects on the external sector.
These projections align with the Reserve Bank of India's projections of 6.5%, which were announced during the latest Monetary Policy Committee meeting on August 6.
The growth outlook is supported by a strong start to the fiscal year, with GDP accelerating to 7.8% in Q1FY26 from 6.5% in the same period last year.
Trump tariff on India Live Updates: SKM warns of nationwide stir over cotton duty exemption
The Samyukt Kisan Morcha (SKM) on Friday sharply criticised the Centre’s decision to extend import duty exemption on cotton till December 31, 2025, warning that the move would severely harm domestic farmers.
In a statement, SKM said the Cotton Corporation of India (CCI) has consistently procured less than 13% of domestic production over the past 11 years, leaving farmers to sell nearly 87% of raw cotton in the open market at distress prices. “Despite widespread protests in the cotton belt, the Ministry of Finance has extended the exemption. With harvesting set to begin in October 2025, the decision will be even more detrimental,” it noted.
Calling the exemption “an affront to the entire farming community”, SKM urged farmers across all crops to join nationwide protests from September 1 to 3, when copies of the notification will be burned in villages. The collective further announced that cotton farmers would march to their respective MPs to press for a reversal, with state-level SKM units finalising dates.
“Farmers must come together and launch an intense agitation,” the statement said, accusing the government of siding with importers at the cost of cultivators.
Trump tariff on India Live Updates: 'Modi govt will have to answer what they are going to do now'
All India Majlis-e-Ittehadul Muslimeen (AIMIM) chief Asaduddin Owaisi hit out at the Prime Minister Narendra Modi-led government over America’s 50 per cent tariff on India and asked why the BJP was frightened of the US. He demanded answers from the Modi government to the people who would suffer losses.
Speaking to ANI, Asaduddin Owaisi said, "This is going to have a major impact. 50 percent of our exports are going to be affected. Rs 60,000 Crores of our export of motor parts, jewellery, gems, readymade garments are going to be badly impacted. In February, our PM met the US President Donald Trump, they held talks, and after that, the tariff situation started. They are blaming us for the attack on Ukraine. The 50 percent tariff will cause a major loss to India's exporters. I think the Narendra Modi Government will have to answer to the people of the country. Modi Govt will have to answer what they are going to do for those who are going to suffer losses. US' Peter Navarro is making statements."
Trump tariff on India Live Updates: Peter Navarro renews his criticism on India
White House trade adviser Peter Navarro renewed his criticism of India on Friday — accusing the country of becoming an “oil money laundromat for the Kremlin”. The remarks came even as the 50% tariffs imposed by US President Donald Trump came into effect and exporters braced for a $48.2 billion hit. The top Trump aide insisted that the levy would “cut off the financial lifeline India has extended to Putin’s war machine”.
Trump tariff on India Live Updates: 'India will continue to be friends, have good relations with US'
India will continue to be friends and have good relations with the United States, Japanese media outlet Nikkei quoted Indian Prime Minister Narendra Modi as saying on Friday during his visit to Tokyo.
- via Reuters
Trump tariff on India Live Updates: India not planning to retaliate on US right now, reports Bloomberg
According to a report by Bloomberg, the informal channels of communication are open between New Delhi and Washington. India has no immediate plans to retaliate against President Donald Trump’s 50% tariffs, the report quoted an anonymous official as saying.
Trump tariff on India Live Updates: Ukrainian Ambassador to India says, 'Putin benefitted from trading with India and gave huge discount for oil'
Amid the ongoing Russia-Ukraine war, Ukraine’s Ambassador to India, Oleksandr Polishchuk, said that Ukraine will not give up or accept any loss of territory. The ambassador suggested that Russia has gained from its trade with India, especially through oil sold at large discounts. However, he pointed out that the money earned is not being used to improve social welfare in Russia but rather to fund the war.
"Of course, (Russian President Vladimir) Putin benefitted from trading with India and gave huge discount for oil, but the problem is that he uses this money not to enhance the social wellness in Russia," the Ukrainian envoy alleged.
Polishchuk warned that Russia could face difficulties in financing social programs next year if the current situation continues. He stressed that the money from oil sales should support the Russian population rather than military efforts.
The Indian rupee fell to its weakest ever level against the US dollar on Friday afternoon. The slide follows the fresh US tariffs that increased duties on Indian goods to 50%, causing concern about trade impacts. The rupee hit Rs 87.9650 per dollar, inching past its previous record low of Rs 87.95. Earlier this week, the US had added a further 25% tariff on top of an existing 25%, doubling the total.
Trump tariff on India Live Updates: India maintained the 'red line', says Jefferies
The Jefferies report states that the tariffs were mainly driven by the US president’s personal frustration at not being allowed to mediate in the long-standing conflict between India and Pakistan.
India has always made it clear that it does not allow any third-party involvement in its disputes with Pakistan. Jefferies noted that this "red line" was maintained even though it came with heavy economic costs. By doing so, India denied the 47th American president a chance to boost his global image and possibly aim for recognition like the Nobel Peace Prize.
Trump tariff on India Live Updates: Jefferies report links US tariffs on India to Trump’s 'personal pique'
The sharp 50% tariffs placed by the United States on Indian goods are mainly due to President Donald Trump’s "personal pique" at not being allowed to mediate in the India-Pakistan conflict, according to a report by global investment bank Jefferies.
The report noted that Trump had reportedly wanted to step in after the four-day military clash between India and Pakistan in May. It added, "tariffs are primarily the consequence of the American president's 'personal pique' that he was not allowed to play a role in seeking to end the long running acrimony between India and Pakistan."
Trump tariff on India Live Updates: India’s cotton strength and FTAs may cushion textile export losses
India’s strong position in the cotton-based textile chain, especially in home textiles, is expected to soften the impact of falling exports to the US, as per the CareEdge ratings. India is the second-largest supplier of home textiles to America, which gives it an edge. Other supportive factors include a weaker rupee and a likely rise in exports to the EU, UK, and Middle East under new Free Trade Agreements (FTAs).
Moreover, while exports of ready-made garments and home textiles may decline, this loss could be offset by higher exports of cotton yarn and fabric, as rival countries do not have the same level of backward integration in these products.
Trump tariff on India Live Updates: India’s textile and apparel exports may see only a small decline, predicts CareEdge
According to CareEdge Ratings, India’s textile and apparel exports may see only a small decline in 2025. But in 2026, exports to the US are expected to drop sharply because of higher tariffs. This could bring down overall textile exports by 9–10%, to around USD 30 billion.
With lower revenues and exporters likely absorbing part of the tariff cost, the profit margins of ready-made garment and home-textile companies could fall by 300–500 basis points. However, the exact impact will depend on how well Indian exporters can negotiate prices with US buyers to keep their sales volumes intact.
Trump tariff on India Live Updates: India's shrimp export to fall by 15-18%, says CRISIL
India’s shrimp exports are expected to fall by 15-18% this financial year after the US raised tariffs to 58.26% starting August 27. Exporters will also earn less, even though they are trying to change their product mix and find new markets.
Revenues, which have stayed flat for the past four years, are likely to fall 18–20% this year. A surge in shipments in the first quarter, done in anticipation of the tariff hike, will only provide limited relief.
In the last financial year, India exported shrimps worth about $5 billion, with the US buying nearly 48% of them.
Trump tariff on India Live Updates: What will offset the impact of US tariffs?
The Reserve Bank of India has already cut interest rates by 100 basis points since February, giving further support to growth. Analysts say these monetary measures, along with targeted government support for exporters, will be key to offsetting the impact of US tariffs.
Economists believe the full effect of the tariffs will become clear after September, making the next quarter a crucial test for India’s economy, a Bloomberg report said.
Trump tariff on India Live Updates: Economists say India’s growth depends more on domestic demand than exports
Despite global pressures, economists stress that India’s growth depends more on domestic demand than exports. Private consumption makes up about 60% of GDP, while exports to the US, though significant at $87.4 billion in 2024, account for only about 2% of GDP, a Bloomberg report said.
To boost demand, the Modi government has announced changes to simplify the GST, which could lower prices for consumers and businesses. IDFC First Bank estimates these reforms could add 0.6 percentage points to GDP growth over the next year, the report added.
Trump tariff on India Live Updates: Grim GDP outlook for rest of the year
Nomura’s Sonal Varma estimated growth at about 6.9% for the June quarter but expects it to fall below 6% in the second half of the year, reported Bloomberg. US tariffs of up to 50%, now among the highest in Asia, are expected to hit industries like textiles, footwear, and jewellery. Citigroup estimates these tariffs could reduce India’s annual growth by 0.6–0.8 percentage points. Yes Bank’s chief economist Indranil Pan told Bloomberg that weaker global demand and high tariffs will put pressure on export-heavy and labor-intensive sectors.
Trump tariff on India Live Updates: GDP data could reveal weak mining output, low power demand, and a slowdown in manufacturing
Economists have warned that India's GDP the growth may not last, aa Bloomberg report said. With new US tariffs now in place, India’s exports could face big challenges in the coming months. Nomura’s Sonal Varma told Bloomberg that while exports grew due to “front-loading” shipments, urban consumption and private investment remained weak. Bank of America economists said that Friday’s official GDP data could reveal weak mining output, low power demand, and a slowdown in manufacturing, particularly as auto sales decline.
Trump tariff on India Live Updates: India saw 6.7% GDP growth in June quarter
India’s economy grew at a healthy pace in the April–June quarter of 2025, supported by strong exports and rural demand. According to a Bloomberg survey of 37 economists, India’s GDP likely expanded by 6.7% in this period. This was slower than the 7.4% growth in January–March but still better than the 6.5% growth recorded a year ago.
Growth in the first quarter of the financial year is usually softer, but exports to the US got a temporary boost after Trump's pause on reciprocal tariffs.
Trump tariff on India Live Updates: Trump ends de minimis exemption - What are the ripple effects and which countries will be impacted?
Canada, Mexico and the United Kingdom are the next largest senders of small packages to the US, according to US Customs and Border Protection. Other major sources include India, South Korea, India, Vietnam, and Thailand, logistics firm Red Stag Fulfillment said, reported Reuters. Since the US removed China’s exemption on May 2, the number of duty-free small packages has already dropped by about one-third, Red Stag reported. Some small British businesses that sell online to US customers have already raised prices. Australia Post, Britain’s Royal Mail, Germany’s DHL, Japan Post, Korea Post and others have temporarily stopped shipments to the U.S. while they adjust to the new rules.
Trump tariff on India Live Updates: Trump ends duty-free imports on small packages, prices in US likely to rise
The Trump administration has stopped duty-free imports of packages worth less than $800, a rule which is known as the "de minimis" exemption. This change, announced by Trump in July, came into effect in the US a month later. Earlier, shoppers in the US could order small packages from overseas without paying extra duties. Now, buyers may face higher costs unless sellers decide to cover the tariffs themselves.
The decision extends an earlier move from May, when tariffs were applied to shipments from China and Hong Kong. The change affects retailers like Shein and Temu, which mainly send products from China to US consumers.
Trump tariff on India Live Updates: Navarro blames India for 'strategic freeloading'
Navarro went on to says that while the US spends money to arm Ukraine, India is helping Russia financially and at the same time imposing some of the world’s highest tariffs on American goods, which hurts US exporters. He pointed out that the US has a $50-billion trade deficit with India, and claimed New Delhi is using American dollars to purchase Russian oil. According to him, India profits while Ukrainians continue to suffer. He also accused India of buying Russian weapons while pressuring US companies to share sensitive military technology and set up factories in India, calling it “strategic freeloading.” Navarro further argued that the Biden administration has ignored this situation, whereas Trump is directly addressing it.
Trump tariff on India Live Updates: Navarro says 'it's not about India's unfair tarde, but...'
Trump's trade advisor Peter Navarro took to X on Friday and wrote, " President Trump’s 50% tariffs on Indian imports are now in effect. This isn’t just about India’s unfair trade—it’s about cutting off the financial lifeline India has extended to Putin’s war machine."
Trump tariff on India Live Updates: 'India has turned into oil money laundromat for Kremlin,' says Peter Navarro
A day after calling the Ukraine conflict “Modi's war,” White House trade adviser Peter Navarro accused India of being an “oil money laundromat for the Kremlin.” This is not the first time he's called India that. In fact, he made the same comment almost a week ago. He criticised New Delhi for continuing to buy Russian weapons while at the same time asking US companies to transfer sensitive military technologies and set up factories in India. Navarro argued that if India wants to be treated as a true strategic partner of the US, it must act like one.
Trump tariff on India Live Updates: Indian share market muted today
The Indian share market stayed flat on Friday as gains in consumer stocks balanced out a wider fall in other sectors. Investor mood remained weak after the US imposed steep tariffs on Indian goods earlier this week. At 10:01 am IST, the Nifty 50 slipped 0.05% to 24,488.1 points, while the BSE Sensex dropped 0.02% to 80,067.81. Both indexes had already fallen nearly 2% each in the last two sessions due to worries over the U.S. tariffs. So far in August, the Nifty has lost 1% and the Sensex 1.25%, after both dropped around 3% in July.
Trump tariff on India Live Updates: 'America is acting like a king and treating India as a guilty party,' says AAP’s Delhi President Saurabh Bhardwaj
AAP’s Delhi President Saurabh Bhardwaj slammed the United States for placing steep tariffs on Indian goods. He said the US is behaving like a superior power and treating India unfairly by imposing such penalties. Bhardwaj pointed out that when the US raised tariffs on China by 125%, China immediately struck back. But in India’s case, even after America imposed a 50% tariff, the government has not responded. He accused Prime Minister Modi of hurting the country’s self-respect and urged that India should impose similar tariffs on the US so that Washington realises the impact.