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

Investors’ wealth eroded Rs 5.41 lakh crore on Tuesday as markets fell sharply, with the benchmark Sensex tumbling 849 points to close below the 81,000 level on Tuesday due to widespread selling pressure after the US issued a draft notice on the implementation of an additional 25 per cent tariff on Indian products.

The 30-share BSE Sensex tumbled 849.37 points, or 1.04 per cent, to close at 80,786.54 with 25 of its constituents ending lower and five with gains. During the day, the index nosedived 949.93 points, or 1.16 per cent, to hit a low of 80,685.98.

Persistent foreign fund outflows and losses in global equities following US President Donald Trump’s firing of a Fed governor also dampened investor sentiment

According to an Indian Express report, the textiles and apparel manufacturers in Tirupur, Noida, and Surat have halted production amid worsening cost competitiveness due to the additional tariffs.

“This sector is losing ground to lower-cost rivals from Vietnam and Bangladesh. As for seafood, especially shrimps, since the US market absorbs nearly 40 per cent of Indian seafood exports, the tariff increase risks stockpile losses, disrupted supply chains, and farmer distress,” Federation of Indian Export Organisations President S C Ralhan said in a statement.

“The Quad is indeed an important platform for working on and promoting peace, stability, prosperity and development in the Indo-Pacific region,” said foreign secretary Vikram Misri.

He added said India was still in talks with the U.S. over the tariffs and keen to continue expanding its cooperation with the Quad countries.

The Indian stock market witnessed a sharp sell-off on Tuesday after the Trump administration issued a notification to impose an additional 25% tariff on Indian imports. The secondary tariffs will come into effect from August 27 and take the total tariff on Indian goods to 50%. Stock markets traded under pressure today and slipped below crucial support levels, derailing the recent recovery momentum.

“The government has no hope for any immediate relief or delay in U.S. tariffs,” said a commerce ministry official told Reuters.

The official added that exporters hit by tariffs would receive financial assistance and be encouraged to diversify to alternative markets such as China, Latin America and the Middle East.

The total tariff on Indian goods entering the US market (with certain exceptions) will become 50% from Wednesday. The US had imposed a 25% on August 7. President Donald Trump had also announced an additional 25% tariffs as a penalty for buying Russian crude oil and military equipment — set for implementation after 21 days.

The US Department of Homeland Security, in the draft order published on Monday, said the increased levies would hit Indian products that are “entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time on August 27”.

The Indian rupee continued its losing streak for a fifth consecutive session on Tuesday as Washington confirmed it will impose an extra 25% levy on Indian goods, clouding the outlook for Asia’s third-largest economy.

The fall in the rupee was curbed after dollar sales from banks, likely on behalf of the Reserve Bank of India, traders said.

U.S. Department of Homeland Security on Monday outlined the procedure to implement additional tariff on Indian goods starting Wednesday.

The tariffs risk slowing growth in India as exporters face U.S. duties of up to 50% – among the highest imposed by Washington.

Exporter groups estimate that the hikes could affect nearly 55% of India’s $87 billion in merchandise exports to the U.S., while benefiting competitors such as Vietnam, Bangladesh and China.

(via Reuters)

The Principal Commercial Officer at the US Embassy in India reaffirmed the United States’ commitment to work with India in many sectors — specifically in the energy security partnership. Xiaobing Feng highlighted the growing cooperation between New Delhi and Washington DC in the energy sector during the Indo-American Chamber of Commerce (IACC) 3rd Energy Summit.

He also recalled that US President Donald Trump and Prime Minister Narendra Modi, in February 2025, had reaffirmed the shared role of both nations as “leading producers and consumers in shaping local energy markets,” and reiterated their commitment to a long-term bilateral energy security partnership covering oil, gas and civil nuclear energy.”

The notice issued by the Trump administration on Monday said that from 12:01 AM EDT on August 27 (9:30 am IST on Wednesday) Indian goods brought into the US for use, or taken out of warehouses for sale, will face higher tariffs.

Responding to the high tariffs imposed by the United States, Georg Enzweiler, Deputy Head of Mission at the German Embassy in India, said on Tuesday that Germany supports keeping tariffs as low as possible because they block free trade, reported ANI. “Tariffs are obstacles to free trade. We would always be in favour of reducing tariffs to the minimum level,” Enzweiler said. He also spoke about India and Germany’s trade ties, saying that both countries share common interests in today’s uncertain global situation and can work together to bring stability to the world order.

Ahead of US’ steep tariff hike, External Affairs Minister S Jaishankar has said that India is in touch with the US on the matter, a report by CNBC said. He further added that Prime Minister Narendra Modi is expected to hold bilateral talks during his China visit. Jaishankar also revealed that India has specific interest in some of Japan’s defence platforms.

CNBC reports that India’s diamond exports have already fallen to a 20-year low because of weak demand from China. Now, higher US tariffs under Trump are threatening India’s access to its biggest market, which buys nearly one-third of the country’s $28.5 billion annual gem and jewellery exports. In Surat, where over 80% of the world’s rough diamonds are cut and polished, orders are slowing down as US tariffs make buyers uncertain.

Smaller exporters have fewer ways to cope with the loss, but some larger companies are planning to shift part of their work to countries like Botswana, which faces only a 15% US tariff, the report added.

Prime Minister Narendra Modi, while addressing the crowd in Ahmedabad on Monday, without taking any names, said that the pressure on India is going to increase but “we will keep increasing our strength to withstand it”. The PM’s statements came ahead of Trump’s additional 25% tariffs on Indian goods that are going to be imposed from tomorrow.

The RBI is said to be selling dollars through state-run banks to stop the rupee from falling further, a Reuters report said. The Indian rupee is currently under pressure because of the concerns over steep US tariffs that are going to come into effect tomorrow. Traders believe the RBI is trying to prevent the rupee from weakening beyond 87.80, but they are unsure how long the central bank will continue such support, the report added.

A report by CRISIL states that India’s readymade garmet industry will see its revenue growth drop by almost half this Financial Year. This is of course due to the 50% tariffs that will be imposed on the RMG imports from India from August 27. Along with the falling profits, this will also weaken the financial health of many companies. However, the impact will differ from company to company, especially for those that earn more then 40% of their revenue form the US.

CRISIL, in its report, said that it studied over 120 garment makers, with combined revenues of about Rs 45,000 crore, and found similar results.

Last year, RMG exports from India were worth about $16 billion, which made up 27% of the industry’s total revenue. About one-third of these exports went to the US. The new 50% tariff will put India at a clear disadvantage compared to rivals like China, Bangladesh, and Vietnam.