Trump Tariff Live Updates: India-US hold informal talks, no plans to retaliate: Report

Indian exporters are struggling to cope with the 50% US tariffs. Major firms like Dawar Group, Farida Group, and AEPC’s Sudhir Sekhri are offering heavy discounts to hold on to American buyers, while trade bodies push “sell at cost” strategies, a TOI report said. Some are exploring new markets like Dawar in Russia and Latin America, Corona Steel in Africa, and jewellery exporters at home, but admit the alternatives are limited.

The report added that before the tariff deadline, exporters were rushing shipments. Companies from Bharat Forge and Gokaldas to shrimp and gem exporters even airlifted T-shirts to the US to escape higher duties. But now, orders from America are uncertain, buyers in other regions are demanding steep price cuts, and early signs of stress are visible. Tirupur dyeing units have reduced shifts, shrimp processors have stopped overtime, and jewellery exporters have started letting go of contract workers, the report added.

India has not issued any directive as of now regarding restricting oil imports from Russia. New Delhi’s envoy to Moscow said that India will keep buying oil from suppliers offering the best price, stressing that energy security for 1.4 billion people is the priority. He added that cooperation with Russia and others has helped stabilise global oil markets.

A report by Moody’s Analytics warns that the new US tariffs on Indian goods will sharply reduce export demand. The analysis said losing sales in their biggest market will cause serious damage. It also noted that countries in Europe and the Asia-Pacific are facing similar setbacks, since the US is their main trading partner too. Some companies may lower prices to keep sales steady, but this could cut into profits, slow wage growth, and reduce investment, ultimately hurting overall business performance.

Private consumption, which makes up the largest share of India’s economy, is losing steam, a Reuters report has said. It accounted for 63% of the economy in 2024, which was the highest among Asian peers, but now growth has slowed sharply from 8.5–12% in late 2023 and 2024 to just 6.4% in early 2025. Economists believe the slowdown worsened between April and June, especially due to the US tariff pressure. Falling consumer price inflation, which dropped to a decade low of 1.55% in July, is another sign of weak household demand.

Other items that are exempted from the steep tariffs include refined petroleum fuels and products which were worth $4.1 billion in 2024–25. Exemptions also cover books, brochures, plastics, cellulose ethers, metals like ferromanganese, ferrosilicon manganese and ferrochromium, along with computer equipment such as motherboards and rack servers.

US President Donald Trump has told pharma companies to shift production to the US or risk tariffs that could climb to 200% within two years. Electronics exports from India, worth $10.6 billion last year, are currently exempt. These include smartphones, chips, storage devices, and telecom equipment. But Trump has warned that Apple could face tariffs if it keeps exporting products made in India.

India’s textile sector has asked the government for immediate cash support and a pause on loan repayments to survive the blow of 50% US tariffs, which are set to kick-in today. At a recent meeting with the Ministry of Textiles, the industry also pressed for quicker FTA talks with the EU to offset losses in the US market.

Exporters are urging the government to roll out a special support scheme to cushion the impact of new US tariffs. They want measures like duty drawback or partial reimbursement to cover 25–50% of the extra costs on gems and jewellery exports between August and December 2025.

While 30% of India’s exports to the US will stay duty-free and 4% will face a 25% tariff, the remaining 66%, which mainly constitutes apparel, textiles, gems and jewellery, shrimp, carpets, and furniture, will be taxed at 50%, the GTRI report said. This could make these products uncompetitive in the American market. Exports from these sectors may fall by as much as 70%, shrinking to about $18.6 billion. Overall, India’s shipments to the US could drop by 43%, putting hundreds of thousands of jobs at risk.

According to GTRI, around 30% of exports, worth $27.6 billion, will remain free from these tariffs. These mainly include medicines, APIs, and electronics. Medicines alone account for 56% of these exempted items, providing some relief.

According to the GTRI report, agri-food exports including rice, spices, and tea, will face a 50% tariff and this is bound to give competitors like Pakistan and Thailand an edge.

Similarly, metals and chemicals will also suffer. Steel, aluminium, and copper worth $4.7 billion, along with organic chemicals worth $2.7 billion, will face tariffs above 50%, badly hurting small and medium businesses, the report added.

Trade experts have warned that India’s diamond-polishing, shrimp, and home textile industries could face a decline in sales because they depend heavily on the US market. Nearly half of shrimp exporters’ earnings come from the US, which thus makes the marine export sector quite vulnerable.

Home textiles and carpets are also at risk. Exports make up about 70–75% of sales in home textiles and 65–70% in carpets. Crisil estimates suggest that the US alone buys around 60% of home textiles and 50% of carpets.

India and the US officials held virtual talks on Monday to review cooperation in trade, investment, critical minerals, and energy security, including civil nuclear projects. The discussions took place under the 2+2 Intersessional Dialogue at a time when relations between the two countries see a strain due to the Trump administration’s tariff hike.

According to the Ministry of External Affairs, both countries also agreed to expand defence cooperation. This includes plans to sign a new 10-year framework for the India-US Major Defence Partnership and to work together in defence industry, science, and technology.

Donald Trump on Tuesday threatened that the US may impose economic sanctions on Russia if a ceasefire with Ukraine is not reached. He stressed that the sanctions are a way to push for peace, as the goal is to avoid any situation that could lead to a world war. ”

“We want to have an end. We have economic sanctions. I’m talking about economic because we’re not going to get into a world war,” Trump said.

About 30% of India’s exports to the US, worth $27.6 billion in FY25, will not face any duties. These include products like medicines, electronics, and petroleum, which have been kept out of Trump’s new tariffs. However, around 4% of exports, mainly auto parts, will be taxed at 25%.

At the same time, countries such as Vietnam, Bangladesh, Cambodia, and even China and Pakistan, which currently enjoy lower tariffs under the Trump administration, are likely to gain from India’s possible setbacks in export-focused industries.

The US Department of Commerce has announced anti-dumping and countervailing duties on corrosion-resistant steel products from 10 countries. The move follows investigations into unfair trade practices. The decision affects $2.9 billion worth of imports from Australia, Brazil, Canada, Mexico, the Netherlands, South Africa, Taiwan, Turkey, the United Arab Emirates, and Vietnam, a Reuters report said. Officials said the steel from these countries was either being sold below fair value or supported by government subsidies.

After the US announced a 50% tariff on Indian goods, Fijian Prime Minister Sitiveni Rabuka said that he believes PM Narendra Modi has the strength to handle such challenges. He shared that during a recent conversation, he told PM Modi that while some countries may be unhappy with him, he is strong enough to face the pressure.

Rabuka’s remarks came during his four-day visit to New Delhi, which began on Sunday, where he was accompanied by his wife, Suluweti Rabuka.

“The recent announcements of the tariffs…l told him (PM Modi) the other day, somebody is not very happy with you, but then you are big enough to weather those discomforts,” Fijian PM had said.

Donald Trump and the White House have earlier described the new taxes on Indian goods as sanctions. The decision was announced just hours after PM Modi had signalled that India would not give in to outside pressure. The tariffs will take effect from 9:30 am IST today.

Almost half of India’s $87.3 billion exports to the US will now face a 50% tax. The hardest-hit sectors will be textiles, garments, gems and jewellery, seafood, but mainly shrimp and leather products. However, key sectors like pharmaceuticals, which supply vital generic drugs to the US, along with electronics and smartphones such as Apple iPhones, will remain exempt.

Trump on Tuesday said that during the India-Pak conflict, he spoke to PM Narendra Modi and asked him about the tensions and described the hostility between the two countries as very deep and going back hundreds of years. Trump claimed he refused to move forward with trade deals because he feared their rivalry could lead to a nuclear war. He said he warned both sides that the US would impose very high tariffs if they didn’t ease tensions. “I said, call me back tomorrow, but we’re not going to do any deals with you, or we’re going to put tariffs on you that are so high, your head’s going to spin,” Trump said. According to him, within hours the situation calmed down. He added that while tensions might rise again, he believes he can stop it if needed. “Now maybe it starts again. I don’t know. I don’t think so, but I’ll stop it if it does. We can’t let these things happen…” says US President Donald Trump,” he added.

US President Donald Trump’s decision to impose an extra 25% tariff on Indian goods will take effect on Wednesday, August 27 (today). This will raise the total tariff on Indian imports to 50%. Trump announced the move as a punishment for India buying oil from Russia. India has strongly opposed the decision, calling it “unfair, unjustified, and unreasonable.”

Senior officials of India and the US have discussed bilateral ties in the areas of trade and investment, critical minerals, and energy security, including strengthening civil nuclear cooperation.

The virtual talks held on Monday under the framework of ‘2+2 Intersessional Dialogue’ came against the backdrop of strain in ties between the two countries over Trump administration’s policies on trade and tariff.

The Ministry of External Affairs (MEA) said both sides looked forward to increasing defence cooperation, including signing a new 10-year framework for the India-US Major Defence partnership, as well as advancing defence industrial, science, and technology cooperation.

Americans’ view of the US economy declined modestly in August as anxiety over a weakening job market grew for the eighth straight month. The Conference Board said Tuesday that its consumer confidence index ticked down by 1.3 points to 97.4 in August, down from July’s 98.7, but in the same narrow range of the past three months. The small decline in confidence was in line with the forecasts of most of the economists who were surveyed.

Low-value imports are losing their duty-free status in the United States this week as part of President Donald Trump’s agenda for making the nation less dependent on foreign goods and resetting global trade with tariffs. An executive order signed last month eliminates a widely used customs exemption for international shipments worth $800 or less starting Friday. The national postal services of more than a dozen countries including India have said they will temporarily suspend sending some or most US-bound packages due to confusion over processing and payment requirements.

US President Donald Trump insisted on Tuesday that other countries — both ‘friend and foes’ — had been “robbing America blind” for decades until he took. He also touted the recently imposed tariffs and other policies during a Cabinet meeting — insisting that “trillions of dollars was flowing into the country”.

US President Donald Trump reiterated plans to impose ‘pretty substantial’ furniture tariffs in the near future during a Cabinet meeting on Tuesday. India is unlikely to be majorly impacted by this.

Exporters from Tiruppur in Tamil Nadu is facing the possibility of large scale job cuts, factory shutdowns and losses amounting to several thousand crores. The industrial town accounts for nearly 68% all knitwear exports from India and employs around a million people. Reports suggest that they could be looking at up to 1.5 lakh job losses and Rs 12000 crore revenue hit.

“We revisit our recession ‘tipping points’ model following recent payroll revisions. Various specifications suggest that the US is likely in a stall state, and perhaps for a year or more. With this heightened susceptibility, the model places odds of a recession within eight quarters at about 50%.” the firm wrote on Tuesday.

Prime Minister Narendra Modi has rejected multiple calls from US President Donald Trump amid an escalating rift between the two countries. According to German newspaper Frankfurter Allgemeine the Indian leader had rebuffed his advances at least four times in recent weeks.

Read more: Modi rejects Trump calls, report says US President dialed at least four times

Oil prices fell by about 1% on Tuesday after surging nearly 2% in the previous session as investors reassessed developments surrounding the war in Ukraine and potential disruption to Russian fuel supplies.

Brent crude was down 94 cents, or 1.4%, at $67.86 a barrel by 1332 GMT, having hit its highest since early August in the previous session. West Texas Intermediate (WTI) crude lost $1.02, or about 1.6%, to $63.78.

“The modest setback today is due to risk aversion, with equity markets trading lower. Geopolitical factors are something to watch for, particularly what Trump might do if there is no meeting between Russia and Ukraine,” UBS analyst Giovanni Staunovo told Reuters.

The rally on Monday was primarily driven by supply risks after Ukraine strikes on Russian energy infrastructure and the possibility of further US sanctions on Russian oil.

According to the Commerce Ministry, around $48.2 billion of India’s merchandise exports (based on 2024 trade value) to the US will be subject to additional tariffs.

The US draft order stated that Indian products will be exempt from 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 a special code.