As of September 29, 2025, there’s a major escalation in tariff tensions between the United States and India, with direct implications for industries, exporters, and trade policy worldwide. After President Donald Trump’s historic re-election, his administration announced a sweeping set of supplementary tariffs affecting a range of Indian exports. The most headline-grabbing move was the rapid imposition of an additional 25% tariff on a broad list of Indian goods—soon followed by raising duties on select categories, notably textiles, gems and jewelry, auto components, and crucially, pharmaceuticals, to effective rates as high as 50%. According to SamvadaWorld, many in the US administration justified these actions on national security grounds and on India’s ongoing purchases of Russian oil, despite the US previously encouraging such purchases to stabilize global energy prices.

The consequences for India have been swift and severe. Financial press and trade monitoring agencies are reporting sharp revenue contractions across Indian garment, textile, and small engineering businesses, as US buyers either cancel orders or divert them to competitors in Vietnam or Bangladesh. The Federation of Indian Export Organisations estimates the new tariffs are eroding profit margins and risking long-term customer relationships, which Indian exporters fear would be nearly impossible to recover once lost. Financial markets reflected the turmoil as Indian export-dependent equities took a battering, while order pipelines for labor-intensive sectors dried up almost overnight.

India’s government response has focused on mitigation: boosting export subsidies, providing targeted stimulus to affected industries, and accelerating efforts to diversify export markets, especially with new emphasis on Southeast Asia and Africa. Indian policymakers have also redoubled capacity-building programs to foster greater economic autonomy and resilience. In parallel, India pressed the United States to roll back the extra tariffs in ongoing trade negotiations, seeking tariff rates below 20%, as reported by The Sentinel Assam, especially stressing that India should not be singled out for its Russian oil purchases.

Meanwhile, an even more dramatic move was reported by RepublicTV, revealing that the Trump administration has slapped a 100% tariff on Indian pharmaceutical imports. This is a sector where India holds global significance as a major supplier. Indian pharmaceutical companies are now racing to innovate and strengthen business with alternative markets as US importers, hospitals, and patients brace for steep price shocks and possible shortages.

Diplomacy has inevitably been strained. India has halted some defense procurement plans from US vendors in protest, and leading members of the US Congress have publicly questioned the wisdom of policies that threaten a vital long-term partnership with India, a key strategic ally in the Indo-Pacific.

As legal battles mount in US courts challenging the executive’s tariff authority, it’s clear these tariff hikes have damaged trust not just with India but also the multilateral trading system, raising the specter of geopolitical leverage through economic coercion.

Listeners, that’s the latest on the India-US tariff front—one of the world’s most closely watched economic flashpoints, with ripple effects for supply chains, trade diplomacy, and global markets. Thank you for tuning in to India Tariff News and Tracker. Don’t forget to subscribe for ongoing, unbiased analysis. This has been a quiet please production, for more check out quiet please dot ai.

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