Indian and US tariff tensions are making headlines today, with new developments and ongoing negotiations capturing attention. India’s External Affairs Minister S Jaishankar addressed the Kautilya Economic Conclave in New Delhi just hours ago, detailing the current deadlock between Washington and New Delhi. He revealed that India is actively negotiating American tariffs that now reach up to 50 percent on Indian exports. These tariffs were first imposed during former US President Donald Trump’s administration and include an initial 25 percent duty on Indian shipments, plus an additional 25 percent penalty tied specifically to India’s continued import of Russian crude oil.
Jaishankar emphasized that these tariffs are viewed as “unfair” and “unjustified” by the Indian government, citing that other countries also import Russian energy without facing the same penalties. According to Business Today, negotiations over a bilateral trade agreement have entered their fifth round, with no breakthrough as India insists its fundamental “red lines” must be respected before striking a deal.
TaxTMI reports that the extra Trump-era tariff is set to raise duties on certain Indian goods to 50 percent. This will especially hit sectors like textiles, marine products, leather, gems, chemicals, and engineering machinery—though notably, critical areas such as pharmaceuticals and essential electronics are exempt from the additional duties. The Indian government condemned the targeting of its energy imports as unreasonable and stated it will take all measures necessary to safeguard its national interests and maintain economic security.
The Economic Times explains that these ongoing tariffs are creating major dilemmas in India’s trade policy, with rules-based global trade order feeling increasingly sidelined by protectionist moves. Jaishankar commented that ownership, security, reliability, and supply chain resilience now weigh just as much as cost in economic decisions, indicating a long-term shift in strategy.
India’s pivot to diversify export markets is also in focus. Outlook Business highlights renewed momentum in India–EU Free Trade Agreement talks, with officials positioning Europe as an essential offset to the unpredictability of the US tariff regime. Commerce Minister Piyush Goyal is pushing for a “balanced and mutually beneficial” deal to help Indian exporters regain cost competitiveness in Europe, especially in textiles and engineering sectors.
While the Trump administration’s tariff moves have generated legal challenges, with trade experts cited by AOL Finance expecting Supreme Court action on their scope and legality, sectoral tariffs continue to roll out and fragment the global trade landscape. The OECD’s Sean Michael Dougherty told Financial Express that despite these challenges, India’s growth prospects remain robust, with strong domestic policy and diversification efforts helping offset the drag from US trade tensions.
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