Welcome, listeners, to India Tariff News and Tracker. Here is your update for Monday, October 27, 2025. The latest tariff battle between the United States and India is heating up, with significant headlines and potential turning points that could impact both economies.

President Donald Trump earlier this year imposed punitive tariffs totaling 50 percent on a range of Indian goods. This measure is part of Trump’s response to India’s continued purchase of Russian crude oil, which now meets about a third of India's energy needs according to UkrAgroConsult. The US president first announced a 25 percent tariff on India, then followed with a second 25 percent penalty tied directly to oil imports from Russia. As a result, nearly half of India’s $87 billion in annual exports to the US — covering major industries like textiles, gems, jewelry, auto components, and precision engineering — are affected, according to Sify News. These tariffs are expected to reduce India’s GDP by as much as half a percentage point and have hit high-value sectors particularly hard.

In the midst of these strains, trade negotiators from both nations have been working towards a deal that could lower tariffs on Indian exports to the US from the current 50 percent to possibly as low as 15 percent. Reports in Textile Today and UkrAgroConsult indicate that while an agreement appears within reach, major sticking points remain, especially over India opening its dairy and agricultural markets to US products and India’s reluctance to phase out Russian oil imports.

The US, according to Rediff.com, remains unwilling to reduce tariffs below 25 percent unless India matches or surpasses concessions made by regional competitors like Pakistan, Bangladesh, and Indonesia. India, in turn, is insisting that any reduction should make its goods competitive for the US market, especially compared with those of other Asian countries. Commerce Secretary Rajesh Agrawal is leading talks in Washington, pushing for what he describes as a “win-win solution,” with India seeking to double energy imports from the US without sacrificing its strategic autonomy or domestic interests.

Despite the friction, trade figures remain robust. According to India’s commerce ministry, exports to the US from April to July this year grew 21.64 percent to nearly $34 billion, and the US remains India’s largest trading partner. However, Indian officials have made it clear they will not accept a deal made with “a gun pointed towards it,” in the words of India’s Commerce and Industry Minister Piyush Goyal, emphasizing that India plays a long game and negotiates as an equal.

Meanwhile, industry voices see this crisis as a potential catalyst for technological transformation. Sify News argues that the tariffs could accelerate India’s shift toward artificial intelligence-driven manufacturing and supply chain innovation, bolstering export competitiveness and ultimately reducing future reliance on vulnerable sectors.

That’s all for today’s edition of India Tariff News and Tracker. Thank you for tuning in, and don’t forget to subscribe for more updates. This has been a quiet please production, for more check out quiet please dot ai.

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