Listeners, here’s your update for August 20, 2025, from India Tariff News and Tracker. The big headline: almost $48.2 billion worth of Indian goods headed to the United States are about to be hit with a massive 50 percent tariff. According to the Economic Times, this new measure involves a 25 percent reciprocal tariff imposed on Indian exports to the US starting August 7, and an additional 25 percent ad valorem duty kicking in from August 27. The Indian government, through Commerce and Industry Minister Jitin Prasada, has stated in Parliament that these tariffs could impact sectors ranging from textiles to high-tech manufacturing and are a direct reaction to recent US actions.

President Donald Trump’s administration rolled out this sweeping set of tariffs earlier this month. The American Bazaar Online reports that Trump first announced a 25 percent levy on Indian goods, then quickly added another 25 percent tied to India’s ongoing purchases of Russian oil. The result is a tariff shock that many analysts believe could set back US-India economic relations by a generation. Both sides had been making progress toward a bilateral trade agreement, but the US trade team has postponed the next round of talks scheduled for this week.

The Times of India highlights that these new tariffs are part of the Trump administration’s broader agenda to pressure Russia over the Ukraine conflict. US press secretary Karoline Leavitt explained that the administration’s intent is to use trade measures against India to apply “secondary pressure” on Moscow. As a result, Indian refiners are now holding back on Russian oil tenders for September, worried about potential penalties and disruptions in the oil supply. This is significant, as Russian oil accounts for about 35 percent of India’s imports.

From a strategic perspective, Trump’s top trade adviser Peter Navarro wrote in the Economic Times that India depends too much on the US as its largest export market, warning that around $87 billion in annual exports are at risk if India does not align its economic policies more closely with Washington’s priorities. The risks here are not just economic; there are broader concerns about whether the US push could push India closer to China, as Indian business leaders quietly explore deals in high-tech sectors with Chinese firms to buffer the shock from US trade measures.

The Diplomat adds that as the US uses tariffs more aggressively as a tool of foreign policy, India is now looking to diversify its trade relationships and reform its domestic economy to weather the storm. During April to July of this year, Indian exports to the US actually rose by over 21 percent year-on-year, but there is widespread concern among policymakers and industry leaders about how long that trend can continue in the face of escalated tariffs and countervailing duties.

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