Welcome to India Tariff News and Tracker, your focused update on how Donald Trump’s tariff agenda is reshaping India–US trade, and what it means for you.

According to Business Standard, 2025 has become “the year of tariffs” for India’s exports to the United States, as President Trump’s second-term “America First” strategy has translated into some of the harshest duties New Delhi has faced in decades. Business Standard reports that Washington first announced a 26 percent tariff on Indian goods on April 2, followed quickly by a 10 percent baseline tariff on all US imports, including those from India. Implementation was delayed to allow negotiations, but when talks failed, the US confirmed a 25 percent tariff on Indian goods from early August, followed by an additional 25 percent penalty linked to India’s continued purchases of Russian crude. By late August, many Indian exports into the US were facing an effective 50 percent tariff wall.

Business Standard notes that the pain is unevenly spread. Pharmaceuticals, semiconductors, energy resources and key minerals are largely spared, but labor‑intensive sectors are taking the hit. Roughly 29 percent of India’s textile and apparel exports go to the US, and those products have rapidly lost price competitiveness to rivals from Vietnam, Bangladesh and Mexico that still enjoy lower US tariff rates. The same article highlights serious stress in gems and jewellery and marine products, with diamond exporters and shrimp producers warning of order cuts and job losses as margins get squeezed.

Oilprice.com reports that these penalties are directly tied to energy geopolitics. Since Russia’s 2022 invasion of Ukraine, India has become the largest buyer of seaborne Russian crude, with Russian oil jumping from about 2.5 percent of India’s imports before the war to around 50 percent by 2025. In response, President Trump imposed a 25 percent tariff in August specifically as a penalty for India’s Russian oil and gas purchases, on top of the broader 25 percent tariff already in place. Despite Trump’s public pressure and his claim that Prime Minister Narendra Modi promised to curb those imports, Oilprice.com says India’s Russian crude inflows actually climbed again in November as refiners raced to stock up ahead of tighter sanctions deadlines.

There are, however, signs of a possible off‑ramp. Moneycontrol reports that India’s Commerce Secretary Rajesh Agrawal says New Delhi and Washington are “very close” to an interim framework deal to lower reciprocal tariffs, alongside broader talks on a bilateral trade agreement. The US Trade Representative’s office has called India’s latest market‑access offers some of the “best” it has ever received, even as disputes linger over US agricultural exports and allegations of Indian “dumping” in rice. For now, though, most Indian exporters to the US are living with a 50 percent tariff environment, while negotiators race to turn political intent into a concrete tariff‑cutting deal.

That’s it for today’s India Tariff News and Tracker. Thank you for tuning in, and don’t forget to subscribe so you never miss an update on the fast‑moving India–US tariff story.

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Listeners, welcome back to “India Tariff News and Tracker,” your quick briefing on how U.S. trade policy under Donald Trump is reshaping India–U.S. economic ties.

According to American Kahani, the Trump administration has rolled out sweeping tariffs on Indian exports in 2025 under the banner of “reciprocal” trade. Early in the year, Washington moved to a 26 percent reciprocal tariff on many Indian goods, later formalized at about 25 percent. By August, the U.S. added an additional 25 percent penalty tariff tied directly to India’s continued imports of discounted Russian oil, taking effective duties on a range of Indian products to roughly 50 percent. American Kahani notes that, before this escalation, Indian rice entering the U.S. faced only about a 10 percent tariff; that same rice now faces a 50 percent border tax, yet shipment volumes have stayed surprisingly resilient, underscoring how central Indian basmati and other varieties are to U.S. consumers.

Indian News Network and other trade-focused outlets echo that India’s rice exporters remain competitive despite the higher U.S. tariffs, thanks to strong brand recognition and limited alternative suppliers at similar quality and price. Business Standard reports that Trump’s hard line comes at a moment when U.S. farmers themselves are under pressure from high input costs, and some in the farm lobby worry that retaliatory moves by India could limit their own access to a fast‑growing market.

On Capitol Hill, pushback is building. The Times of India reports that Indian‑origin U.S. lawmakers have warned that the combination of 50 percent tariffs on Indian goods and a steep proposed $100,000 H‑1B visa fee is hurting American businesses and straining what has long been marketed as a “strategic partnership.” At a House Foreign Affairs subcommittee hearing on South Asia, they argued that Trump’s tariff strategy risks undercutting supply chains that depend on Indian pharmaceuticals, IT services, textiles, and specialty foods, while also sending a negative signal to skilled Indian professionals considering the U.S. as a destination.

Trade experts speaking to CNBC‑TV18 say they expect the 25 percent “penal” tariff linked to Russian oil to become a central bargaining chip in any new India–U.S. trade talks. One international trade specialist suggested that if India recalibrates its oil sourcing and trims some of its own retaliatory tariffs—potentially down to the mid‑teens—Washington could phase out the extra 25 percent penalty, bringing combined duties closer to the base 25 percent “reciprocal” level.

For India, the stakes are high: exporters of rice, steel products, textiles, and certain engineering goods face a tougher U.S. market, while New Delhi must decide how far to go in counter‑tariffs without derailing broader strategic and technology cooperation with Washington.

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Listeners, the latest developments in US-India trade relations reveal a complex and tense landscape shaped largely by tariffs and strategic negotiations. A significant focal point remains the US's imposition of a 50 percent tariff on most Indian goods since August 2025. This unprecedented duty was primarily a response to India’s purchases of discounted Russian oil, which Washington argues indirectly supports Moscow's war in Ukraine. The tariffs have led to a steep 28.5 percent drop in Indian exports to the US within just five months, severely impacting labour-intensive sectors such as gems and jewellery, textiles, and seafood, where exports fell between 37 and 60 percent in recent months. This disruption poses a significant challenge to India’s goal of job creation and economic advancement.

On the trade negotiation front, US Trade Representative Jamieson Greer has characterized India’s latest proposals as the "best we’ve ever received," reflecting a cautiously optimistic tone amid ongoing talks aimed at addressing longstanding issues, including market access for agricultural goods. However, these talks remain fragile. President Donald Trump recently threatened additional tariffs on Indian rice exports, accusing India of “dumping” cheap rice in the US market, which he says harms American farmers. This threat adds fresh uncertainty and could complicate progress, as agricultural market access—particularly for staples like rice and wheat—remains a sticking point. Indian exporters and policymakers are closely watching these developments, as new tariffs could severely affect India’s competitiveness, especially in niche products like basmati rice, which forms a small but important part of exports to the US.

Despite these tensions, there are signs of gradual engagement. Smaller deals advancing include US approval for defense sales worth nearly $93 million and India securing a supply of about 10 percent of its liquefied petroleum gas (LPG) imports from the US. These energy commitments might help reassure Washington regarding India’s efforts to reduce reliance on Russian oil. Additionally, ongoing talks emphasize the dual tracks of negotiating tariff rollbacks and addressing reciprocal measures, underscoring the complexity of the bilateral relationship.

India continues to navigate a difficult balance between protecting its domestic industries and farmers while seeking to maintain and expand access to the lucrative US market. The evolving geopolitical context and trade policies under former President Trump’s legacy, including his “America First” strategy, keep this relationship dynamic and at times contentious.

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Welcome to India Tariff News and Tracker, where we break down the fast-moving story of US–India trade, tariffs, and what it all means for the Indian economy.

The big headline for listeners today: Washington’s 50% additional tariff wall on Indian goods is still in place, but high‑stakes talks in New Delhi this week could finally unlock relief.

According to the Financial Express, the US currently levies an extra 50% duty on Indian imports — 25% as a reciprocal tariff to tackle the bilateral trade deficit, and another 25% as a penalty linked directly to India’s purchases of discounted Russian crude oil. These surcharges, imposed after President Donald Trump’s return to office, sit on top of normal MFN tariff rates and have hit Indian shipments of textiles, leather, marine products, and engineering goods hard, contributing to an 8–9% drop in merchandise exports to the US in recent months.

Rediff Money reports that a US Trade Representative delegation led by Deputy USTR Rick Switzer is in India from December 9th to 11th, meeting Commerce Secretary Rajesh Agarwal and his team. Officials on both sides describe this as a critical push to clinch the “first tranche” of an India–US framework trade deal that would specifically address those extra tariffs, with the broader Bilateral Trade Agreement, or BTA, to follow.

Republic World notes that India has already placed what it calls its “final concessions” on market access on the table, while drawing firm red lines on agriculture and insisting that energy security — including buying from Russia — remains non‑negotiable. Experts interviewed by the channel say they expect a “more rational and reduced level of tariffs” if this round succeeds, but warn that every month of delay deepens the damage to Indian exporters, particularly in pharma, textiles, and other labour‑intensive sectors.

On the US side, the politics are intense. RNAMedia, citing Fox Business data, reports that tariff collections hit a record 215 billion dollars in the last fiscal year, with President Trump repeatedly touting tariffs as the fastest way to “protect US national interests” and even floating the idea, as covered by the Times of India, that tariffs could one day replace federal income taxes. That makes rolling back India‑specific duties politically sensitive, even as US importers and Indian lobbies push for relief.

Despite the friction, Rediff and the Economic Times both highlight that the US remains India’s largest trading partner, with annual goods trade above 130 billion dollars and a shared goal of scaling total bilateral trade to 500 billion by 2030. The coming days’ talks will test whether that long‑term vision can overcome short‑term tariff brinkmanship.

That’s it for this edition of India Tariff News and Tracker. Thanks for tuning in, and don’t forget to subscribe so you never miss an update.

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India is in the middle of a high-stakes trade standoff with the United States under President Donald Trump’s administration, and the pressure is showing up in both tariffs and oil imports. As of this week, the US is charging an additional 50 percent duty on many Indian goods – 25 percent as a reciprocal tariff aimed at the trade deficit, and another 25 percent as a penalty for India buying Russian crude oil at discounted rates. These extra tariffs have already hit Indian exports hard, especially in clothing, marine products, engineering goods and leather, pushing merchandise shipments to the US down sharply.

Indian officials are now in intense negotiations to bring this initial trade deal across the line. A senior Trump administration official, Under Secretary of State Allison Hooker, is in India this week for a five-day visit focused on strengthening strategic and economic ties amid these tariff tensions. Talks are set to resume from December 10, with a US team arriving in New Delhi to push forward on an initial trade pact that could eventually serve as a launchpad for a broader Bilateral Trade Agreement.

The current 50 percent additional duties have created a major headache for Indian exporters. Reports show that overall merchandise exports to the US have fallen more than 8 percent year-on-year to around 6.3 billion dollars in recent months. The tariffs are not just a number – they’re reshaping trade flows, with importers shifting orders to other countries, and Indian micro, small and medium enterprises feeling the squeeze.

On the flip side, India’s crude oil imports from Russia are also under pressure. Because of US sanctions and the political cost of buying discounted Russian oil, India’s purchases are expected to drop to a four-year low. This is not just about energy economics – it’s about how much space India has to maneuver between US demands and its own strategic and economic interests.

Indian External Affairs Minister S Jaishankar has said that every American president brings a different style to foreign policy, and Trump’s focus on trade imbalances has defined Washington’s approach with New Delhi. While he expresses optimism that a deal is within reach, the sticking points remain: how much India will lower tariffs on US farm goods like dairy, wheat, cotton and oilseeds, and how much it will scale back on Russian oil.

For now, the tariff clock is ticking, and the outcome will matter deeply for Indian farmers, small businesses and the broader economy.

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Listeners, tensions between Washington and New Delhi over trade and tariffs have surged again, and India is feeling the squeeze. According to reporting from CBS News and NDTV, President Donald Trump has raised tariffs on a wide range of Indian goods to an effective rate of about 50%, with roughly half of that directly linked to New Delhi’s earlier purchases of discounted Russian crude oil. These higher duties now hang over an export relationship worth tens of billions of dollars, putting pressure on everything from Indian textiles and generic drugs to machinery heading into the US market.

Indian officials and industry groups say these tariffs are already eroding the price advantage that made their products competitive in the US, especially against rivals like China and Vietnam. Business press in India, including the Economic Times and the Times of India, report that exporters are warning of potential job losses in key hubs such as Gujarat’s textile belt and Hyderabad’s pharmaceutical cluster, while also flagging the risk of supply-chain shifts away from India if the dispute drags on. At the same time, India’s central bank leadership has tried to calm nerves, suggesting that the overall macroeconomic impact could be contained if firms diversify markets and move up the value chain.

On the US side, Politico reports that senior trade advisers around Trump insist there is a clear strategy: they see tariffs as leverage to force better access for American companies and to punish what they view as problematic links to Russia. In that framework, India now sits in a band of countries facing relatively high US tariff rates, both because of its use of Russian oil and persistent bilateral trade imbalances. Those same officials hint, though, that India could see relief if it continues to scale back Russian crude purchases and if the two countries can land what they call a “good deal” on broader market access.

Amid the standoff, both governments are still talking. NDTV and Indian business outlets report that a US trade team is preparing to visit India for another round of negotiations aimed at a phased agreement that could trim some of the steepest duties. New Delhi is pushing for a framework that rolls back the most painful reciprocal tariffs while keeping room to protect sensitive sectors at home. For listeners, the signal to watch is whether upcoming talks translate into a roadmap that lowers that 50% barrier and restores predictability for Indian exporters who depend on the US market.

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Welcome back to India Tariff News and Tracker. I'm your host, and we're diving straight into the latest developments on the US-India trade situation that's reshaping commerce between these two nations.

Right now, India is facing hefty fifty percent tariffs on its goods shipped to the United States. The Trump administration imposed these duties back in late August while negotiations were still underway, a move designed to pressure India on several longstanding trade disputes. However, there's real momentum building toward resolution. India's trade secretary recently expressed confidence that a comprehensive trade deal will be finalized before the end of this calendar year. Most outstanding issues between the two nations have been largely resolved according to recent reports, though a formal trade framework still needs to be established to address concerns like reciprocal tariffs and other commercial disputes.

The stakes are enormous for Indian exporters. If those fifty percent tariffs remain in place, imports from India could plummet by roughly sixty-eight percent, translating to about six point six billion dollars in lost US import demand. The textile and apparel sector would be hit particularly hard, with potential losses exceeding two billion dollars in orders alone. Even a twenty-five percent tariff scenario would eliminate approximately two point one billion dollars in demand across all product groups.

One key leverage point in these negotiations is India's oil imports from Russia. The Trump administration has been pushing India to scale back these purchases, and there are signs of progress. India's crude oil imports from Russia have declined meaningfully while US imports have surged, suggesting deliberate supplier diversification. Meanwhile, shipping companies like Maersk are already reporting increased demand from India as confidence grows that a tariff deal is achievable, likely sometime in twenty twenty-six.

The uncertainty is taking a toll on India's economy. The rupee has hit fresh record lows as capital continues flowing out of the country. The Reserve Bank of India is addressing this pressure, with rate cuts expected at their final policy meeting of the year. Analysts believe any near-term relief for the rupee will likely only come once a concrete trade deal is announced.

Meanwhile, other countries in the region have already negotiated agreements with the Trump administration. South Korea recently saw its tariff rate drop to fifteen percent retroactive to November first after introducing legislation to implement strategic US investment commitments. This shows deals are possible when both sides engage seriously.

The coming weeks are critical. With the calendar year winding down, India and the United States are racing to finalize a framework that could avoid the severe economic damage fifty percent tariffs would inflict on Indian exporters and bring stability back to bilateral trade.

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India's manufacturing sector is facing mounting pressure from US tariffs as we head into the final months of 2025. The HSBC India Manufacturing Purchasing Managers Index fell to 56.6 in November, marking a nine-month low and representing a sharp decline from October's 59.2 reading. While this still indicates expansion in the manufacturing economy, the trajectory tells a troubling story for Indian exporters.

The root cause is clear: President Trump's 50 percent tariff on Indian goods has devastated export orders. New export orders fell to a 13-month low in November, with manufacturers reporting weakened demand from international clients. This comes after India's total exports to the United States plummeted 28.5 percent between May and October 2025, a staggering contraction that reflects the real economic consequences of these tariffs.

The impact extends beyond export numbers. Manufacturing output growth has decelerated to its weakest pace since February, and business confidence among producers has hit a three-and-a-half-year low. Companies are absorbing cost pressures themselves rather than passing them to customers, squeezing profit margins across sectors. Employment growth has also softened, with manufacturers hiring only for essential functions as they navigate this uncertain environment.

However, India's government is taking action. According to reports from early December, the Modi administration is pursuing aggressive market diversification through free trade agreements. Negotiations for a landmark India-EU trade deal are expected to conclude by the end of December 2025, potentially opening massive new opportunities. India is also advancing trade talks with Oman, Canada, New Zealand, and Chile, among others. Additionally, the government quietly began rolling back quality control orders on intermediate inputs like minerals and polymers that had restricted imports, recognizing these barriers harm small producers in textiles and other sectors struggling under tariff pressure.

India's industrial production also weakened, rising just 0.4 percent in October compared to four percent in September. While festival-related disruptions played a role, economists acknowledge early tariff headwinds are transmitting through supply chains.

The silver lining is that India's manufacturing sector maintains underlying strength. The PMI remains well above its long-term average of 54.2, and the economy posted robust 8.2 percent GDP growth recently. Moreover, strong business from Africa, Asia, the Middle East, and Europe suggests Indian manufacturers are successfully developing alternative markets beyond the United States.

Listeners, as this trade tension evolves, the India-US bilateral agreement expected by late 2025 will be critical. A favorable framework could ease tariff burdens and revive export momentum. Thank you for tuning in to India Tariff News and Tracker. Don't forget to subscribe for the latest updates on how these trade dynamics continue to reshape India's economic landscape. This has been a Quiet Please production. For more, check out quietplease.ai.

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Welcome back to India Tariff News and Tracker. I'm your host, and today we're breaking down the latest developments in the US-India trade relationship as we head into the final month of 2025.

The situation has shifted dramatically since August when the Trump administration imposed a punishing 50 percent tariff on Indian goods, including a 25 percent penalty specifically targeting India's purchases of Russian oil. These tariffs hammered India's export sectors, with engineering exports alone dropping 14.5 percent to 1.39 billion dollars in October compared to the previous month. Indian exporters have been forced to pivot, redirecting shipments to Asia and Europe to offset the damage.

But here's where things get interesting. On November 14th, the Trump administration removed tariffs on more than 200 imported food products, and Indian agricultural exporters were among the major beneficiaries. This marked the first concrete signal that Washington recognized its policies weren't delivering the intended results. Rising grocery prices and public discontent have apparently shifted the administration's calculus.

The real news is that bilateral trade negotiations between the US and India are now entering their final phases. Both sides are working toward a comprehensive bilateral trade agreement targeting 500 billion dollars in annual trade by 2030, nearly triple current levels. The discussions are focusing on two key components. First, resolving immediate tariff issues, including those reciprocal tariffs and the Russian oil surcharge. Second, addressing longer-term concerns around technology transfer, data protection, and market access for Indian IT and services professionals.

According to Indian commerce officials, most issues have been resolved, and political-level discussions are nearing finalization. The proposed reciprocal tariff rates are being negotiated at either 12 to 15 percent or 15 to 19 percent, positioning India favorably compared to other Asian nations currently operating at 19 to 20 percent rates.

The wild card remains the 25 percent penalty on Russian oil purchases. Indian refiners have already begun cutting orders in anticipation of potential relief, but resolution here is critical. Without addressing this surcharge, Indian officials have signaled the broader agreement would lack meaning.

Meanwhile, India's successful free trade agreement with the UK, finalized in May 2025, demonstrates New Delhi's ability to secure favorable terms. That deal projects doubling bilateral trade to 120 billion dollars by 2030.

Listeners, what we're witnessing is a pivotal moment. India faces tariffs unlike any other trading partner, yet simultaneously maintains momentum toward a breakthrough deal. The coming weeks will determine whether December brings resolution or continued uncertainty.

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India and the United States are on the cusp of a major trade breakthrough as negotiations intensify in the final weeks of 2025. India's Commerce Secretary Rajesh Agarwal announced on Friday that the first tranche of the bilateral trade deal is expected to be signed by year's end, though he cautioned that trade negotiations rarely have rigid deadlines given the complexity of outstanding issues.

The context for these negotiations has been shaped by significant tariff tensions. President Trump imposed a 25 percent reciprocal tariff on Indian products starting in August, followed by an additional 25 percent increase targeting India's Russian oil imports. These moves fundamentally altered the negotiating landscape, pushing both nations toward two parallel tracks of discussion: a comprehensive bilateral trade agreement and an immediate framework trade deal specifically designed to address the high tariffs currently in place.

The disparity in tariff rates between the two nations is striking. While the average applied US tariff stands at just 5 percent, India's average tariff reaches 39 percent. However, some sectors show lower US rates, such as motorcycles at 2.4 percent. The framework agreement currently being negotiated will specifically address both the reciprocal tariffs and oil-related tariffs that have strained bilateral relations.

The broader bilateral trade agreement, formally introduced in February 2025, aims to transform the economic relationship between the two countries. Both nations have set an ambitious target to increase bilateral trade from the current 191 billion dollars to 500 billion dollars by 2030. This goal was first presented during Prime Minister Narendra Modi's visit to Washington earlier this year.

Despite the tariff tensions, momentum has not completely stalled. India's exports to the US actually surged by 18 percent during April through August 2025, reaching 40.39 billion dollars. Additionally, recent tariff relaxations have eased agricultural trade between the nations, decreasing the effective tariff rate by 0.6 percentage points to 12.8 percent in that sector.

Commerce Secretary Agarwal emphasized that while the two countries are close to a resolution, they will not rush the process. Finding the right landing zone for a complete elimination of reciprocal tariffs will require time and careful negotiation. The path forward depends on both nations balancing their domestic interests with the potential for deeper economic integration.

As we head into December 2025, listeners should watch for developments that could reshape US-India trade relations for the coming decade.

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Today’s episode of India Tariff News and Tracker brings you the latest on how US trade policy is impacting Indian exporters. As of late November 2025, India continues to face a 50% tariff on a wide range of exports to the United States, a rate that has been in place since August. This is the highest among major trading partners and has hit sectors like textiles, leather, gems and jewellery, engineering goods, and marine products especially hard. The Economic Times reports that Indian exporters are feeling the pinch, with many businesses racing to adapt and the government preparing new support schemes to cushion the blow.

The US imposed these tariffs under what it calls a reciprocal trade framework, citing trade imbalances and a lack of reciprocity. India’s trade-weighted average tariff is 12%, compared to the US rate of 2.2%, which President Trump has repeatedly called out. The 50% rate was announced in April and took effect in August, with the administration warning of additional penalties if India continued to purchase Russian oil. India has maintained its energy policy, and the tariffs remain.

Despite the challenges, India’s economy remains resilient. Fitch BMI has upgraded India’s GDP growth target for the fiscal year ending March 2026 to 6.5%, and the IMF projects growth at 6.6% for FY2025/26, even under the assumption of prolonged 50% US tariffs. The government’s GST reforms and other structural changes are helping to offset some of the negative impacts.

There is cautious optimism among Indian exporters that the US may eventually lower the tariff burden. Organiser reports that there is strong hope President Trump could reduce the rate to between 10% and 17%, which would provide much-needed relief. For now, though, the 50% rate stands, and Indian businesses are exploring new markets and diversifying their export destinations to reduce reliance on the US.

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Listeners, here’s the latest on India–US tariff news and headlines, especially as they relate to Trump, for your India Tariff News and Tracker.

India and the United States are on the brink of finalizing a major interim trade deal. President Donald Trump has pointed to what he calls a “much different deal than we had in the past,” with both sides now indicating a formal announcement may come soon. For months, Trump’s administration levied steep tariffs on Indian products, with duties spiking to as high as 50 percent over the summer as a penalty for India’s continued—though now declining—purchases of Russian oil. This 50 percent figure included a 25 percent “reciprocal” tariff plus an additional 25 percent penalty, and hit major sectors like textiles, pharmaceuticals, jewelry, and electronics, triggering a 37.5 percent drop in some Indian export shipments between May and September, according to Global Trade Research Initiative and other sources.

Trump’s tariff strategy caused Indian goods to be far less competitive compared with rivals from Vietnam, Bangladesh, and China. Exporters and industry bodies in India reported shrinking margins, factory shutdowns, and jobs at risk, particularly in labor-intensive manufacturing hubs. According to Finance Outlook India, policymakers responded by pushing aggressive export market diversification, targeting Latin America, Africa, and Southeast Asia, and by looking at possible relief for the worst-hit sectors.

Recent weeks have brought a glimmer of optimism. White House economic adviser Kevin Hassett stated the deal is “close to the finish line,” while Indian officials, including Commerce Minister Piyush Goyal, emphasized India will only sign if it protects domestic sectors and is “fair, equitable, and balanced.” One sticking point is India’s imports of Russian oil, which have dropped markedly due to mounting US pressure, with state oil refiners slashing Russian purchases by 45 percent. Meanwhile, India has signed a new agreement to import LPG from the US—about 10 percent of its needs—helping reduce its trade surplus with the US and offering Washington a reason to scale back tariffs.

In the coming agreement, tariffs on Indian goods could be dialed back to somewhere between 12 and 19 percent. The US has already rolled back tariffs on roughly 254 Indian agricultural products—valued at up to $1 billion—including items like tea, spices, nuts, and coffee. This rollback provides a boost for Indian exporters and signals an easing of the toughest trade friction, as reported widely by NDTV Profit and India Today.

Listeners should note that Trump’s tariffs remain a major policy tool, with threatened rates as high as 500 percent for countries that keep trading with Russia. Yet, this new trade deal aims to create a more stable environment, with both countries expected to double their bilateral trade to $500 billion by 2030, realign global supply chains, and strengthen their broader Indo-Pacific strategies. Apparel, textiles, pharmaceuticals, and agri-producers in India are among those poised to benefit most if this deal crosses the finish line in the next few weeks.

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Listeners, welcome to this edition of India Tariff News and Tracker, your source for the latest headlines, current rates, and essential updates on tariffs between the United States and India.

A major development for November 2025 is the reversal in U.S. tariff policy towards India. After months of escalating trade tensions that saw the Trump administration imposing a combined 50 percent tariff on a broad range of Indian goods—25 percent as a so-called reciprocal tariff and another 25 percent as a penalty for India’s continued purchase of Russian oil—recent weeks have brought a notable change. According to IANS and industry sources, after six rounds of bilateral negotiations, India and the United States are now on the verge of closing the first phase of a new bilateral trade agreement. This initial package is expected to ease the 50 percent tariff burden, making Indian exports more competitive in the U.S. market. Sectors such as pharmaceuticals, textiles, and engineering, which have collectively exported over $50 billion to the U.S. in 2025, could see substantial benefit if the final deal is ratified within this month.

In a related policy U-turn, the Trump administration has lifted tariffs on more than 200 Indian food, farm, and agricultural products, including coffee, tea, and spices. According to the Federation of Indian Export Organisations and India’s Commerce Ministry, these exemptions, effective retroactively from November 13, 2025, will qualify about 40 percent of India’s agricultural exports to the U.S. for zero-duty market access. The White House has cited inflation concerns and a need to stabilize supply chains as key reasons for the rollback. Analysts estimate this could boost Indian agricultural exports by roughly $1 billion annually. The National Restaurant Association in the U.S. has praised the move, but they, along with Indian industry voices, caution that tariffs on Indian toys and other goods persist, and those sectors continue to face headwinds. For products like shrimp, basmati rice, apparel, and gems, the full 50 percent tariff still applies.

Despite recent progress, India’s September exports to the U.S. dropped nearly 12 percent year-over-year, with the country’s overall trade deficit widening to a record $41.68 billion in October. Commerce Minister Piyush Goyal has emphasized that any final agreement must be fair, equitable, and offer protection for sensitive domestic industries, particularly Indian farmers and fishermen.

Looking forward, top-level political momentum on both sides is aimed at closing the first tranche of the trade deal by the end of November 2025. While immediate tariff relief will focus on selected sectors, deeper cooperation on regulatory issues and non-tariff barriers remains on the agenda for phase two of negotiations.

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Welcome to India Tariff News and Tracker, where we deliver the latest developments shaping US-India trade and tariffs.

For listeners looking for fresh updates, a pivotal headline today is the ongoing debate over US tariff rates on Indian goods under the Trump administration. According to CNBC-TV18, the current US tariff rate on imports from India stands at a steep 50 percent, making India one of the most impacted countries alongside Brazil. However, there’s growing optimism that these tariffs could come down to below 25 percent, with leading strategists suggesting we may be close to a breakthrough trade deal heading into 2026. The Trump administration is known for starting negotiations with high tariffs as leverage, later unwinding them in pursuit of agreements—a pattern seen previously with China, the EU, and other partners. Analysts now expect India could finally benefit from a reduction in rates after a significant period of underperformance and currency depreciation in response to trade tension.

Turning to specific categories, Hindustan Times recently reported a positive development for Indian farmers and exporters. President Trump granted new exemptions on select food products. This move specifically benefits Indian exports of tea, coffee, spices, and cashew nuts—which had been hit hard by the original 50 percent tariffs. These exemptions are expected to boost agricultural export revenues, especially for smallholder farmers who rely on US markets for their livelihood.

Market experts, speaking at the 2025 CLSA India Forum, highlighted how the drawn-out negotiations for a US-India trade deal have weighed on Indian equities and foreign investment flows. Despite these challenges, Indian equities remain an overweight allocation for some global investors, who see the potential for a significant sector rotation as tariffs ease and trade relations recover.

Listeners should note that inflation risks and credit concerns in the US economy may affect trade policy going forward. President Trump’s tweets indicate he’s aware of rising inflation and consumers feeling the pinch from tariffs, with some pressure on the Federal Reserve to cut rates as household and government debt levels climb. These macroeconomic pressures impact negotiations, making the tariff reduction both a trade and domestic policy priority in Washington.

As we track developments over the coming weeks, the consensus is growing that a US-India trade deal may finally be in sight, promising tariff relief and renewed investor confidence for India heading into 2026.

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Welcome to the latest episode of India Tariff News and Tracker. As we record on November 16, 2025, global trade dynamics continue to ripple from Washington to New Delhi, with tariffs remaining a headline topic. Since former President Donald Trump announced he’s running again for office, discussions about tariffs and trade with India are resurfacing, with speculation mounting about the possible return of aggressive US tariff policies if he’s reelected.

Recent White House briefings confirm that Trump’s advisers are considering a sweeping 10% universal tariff on all imports, including those from India. Bloomberg News recently highlighted that this could mean tariff rates on certain Indian goods—like steel, aluminum, auto parts, and textiles—could increase from the existing 25% to 35%, instantly impacting many key sectors. American importers of Indian pharmaceuticals and generic drugs might also see stricter scrutiny and higher costs, a move The Wall Street Journal says could disrupt supply chains that have become even more important post-pandemic.

Both the US International Trade Commission and Indian Commerce Ministry have acknowledged that the Biden administration has, so far, kept existing tariffs in place on Indian steel, aluminum, and some electronics, with rates like 25% on steel and around 10-15% on electronics, unchanged since 2020. However, new proposals coming from the Trump campaign would enact automatic tariff increases, regardless of individual country negotiations—a stance intended to "protect American jobs," as stated in recent campaign rallies. This is causing concern among Indian exporters and US businesses that rely on Indian manufacturing. The Federation of Indian Export Organisations warns that this could dampen India’s export growth to the US, which reached over $75 billion last fiscal year.

Meanwhile, Indian policymakers are revisiting reciprocal tariff hikes on American agricultural products and technology imports, signaling that tit-for-tat measures could be possible if the US tariff threat escalates. CNBC India reported last week that New Delhi is preparing contingency lists for higher duties if the White House’s proposed universal tariff becomes reality.

As listeners track these developments, keep an eye on headlines: A new Trump administration could mean dramatic tariff resets and more turbulent trade relations between the world’s largest democracies. For Indian businesses, US companies, and everyday consumers, understanding these shifts will be critical as tariffs remain a lever for political and economic strategy.

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Welcome, listeners, to India Tariff News and Tracker.

Today’s spotlight is on surging US tariffs, escalating trade tensions, and the fast-evolving relationship between Washington and New Delhi. The second Trump administration has dramatically reshaped America’s trade landscape. Since January, the average US tariff rate skyrocketed from 2.5% to a high-water mark of 27%—the steepest seen in over a century, as detailed by Wikipedia’s coverage of the Trump administration’s trade policies. By September 2025, the rate moderated slightly, settling near 18%. However, the US now collects over $30 billion in tariff revenue monthly, a staggering jump from under $10 billion just a year prior.

Section 232 of the Trade Expansion Act was invoked to raise tariffs as high as 50% on imports of steel, aluminum, and copper, while cars from most countries—including India—are now subject to a 25% tariff. On top of that, a universal 10% tariff hit nearly all imports on April 5, 2025, under the International Emergency Economic Powers Act. Specific to India, on July 31st, the US announced its very first “secondary tariff,” targeting Indian exports in retaliation for continued trade with Russia. As of August 27, Indian products now face an extra 25% punitive tariff, bringing the baseline for many goods up to 50%. This unprecedented move comes on top of reciprocal tariff adjustments that fluctuate by country, with India now firmly in the crosshairs of America’s bolder trade policy.

The Reserve Bank of India, responding to the shock caused by US tariffs of up to 50% on Indian exports, launched relief measures for exporters this week. Business Standard reports that RBI has extended export credit periods, offered moratoriums for affected industries, and stretched the window for export realization and shipments, all aimed at easing the blow from rising costs and restricted access to the US market.

Despite the friction, there’s cautious optimism. Multiple outlets, including NDTV and India Strategic, quote senior US officials who say trade talks with India are advancing and could soon yield positive outcomes. Negotiations are focused on reciprocal tariff frameworks, harmonizing rates, resolving old grievances over US access to Indian markets—such as high Indian tariffs on motorcycles and farm goods—and India’s demand for restored preferential trade status. President Trump recently suggested that tariff concessions on some Indian exports may be on the table as part of a broader deal, fueled by this year’s appointment of Sergio Gor as US ambassador in New Delhi.

Behind the scenes, a breakthrough limited trade deal could emerge before the end of this year, potentially unlocking new opportunities for both nations. The US and India traded nearly $190 billion in goods in 2024, with both sides expressing ambitions to grow that number significantly.

For listeners tracking agri-trade, Deccan Chronicle notes a November agreement will allow India duty-free access to US soybeans, corn, and certain dairy products, with reciprocal duty rates for these categories dropping below the earlier 19–20 percent.

In summary, India is navigating the most turbulent tariff environment it has ever faced with the US, but high-stakes negotiations, sweeping government relief at home, and a possible deal on the horizon promise dramatic twists in the months ahead.

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Welcome to India Tariff News and Tracker, your go-to source for the latest headlines and analysis on US-India tariffs. Today, listeners, we’re diving into a dramatic new phase for India-US trade relations dominated by punitive tariffs, political tensions, and strategic shifts.

Since August 2025, the United States, under President Donald Trump, has imposed a sweeping 25% reciprocal tariff on Indian goods. This was doubled to 50% just weeks later as a direct response to India’s continued oil imports from Russia, a move described by The Economic Times and Lakshmikumaran & Sridharan as unprecedented in scale, with the intention of pressuring India to realign its energy trade. For Indian exporters, particularly in engineering and manufacturing, the tariffs mean a sharp jump in the landed cost of goods and a scramble to reduce financial exposure, often by leveraging customs strategies like the “first sale” principle to lower declared values.

According to Business Standard, these tariffs have become the focal point in ongoing India-US trade deal negotiations. Indian officials are closely watching the US Supreme Court, which is now hearing arguments about whether Trump’s tariffs exceed presidential powers. If the court rules that the emergency law doesn’t grant Trump the authority, it could potentially trigger more than $100 billion in refunds for affected importers and upend Trump’s key economic platform.

Meanwhile, former RBI chief Raghuram Rajan has called out the US for what he terms discriminatory tariffs—fifty percent on India compared to just nineteen percent on Pakistan. He argues, as reported by the Times of India, that such measures betray India’s trust and put the so-called “Modi-Trump” friendship in clear perspective, noting that small and medium industries in India are suffering most while big American firms enjoy waivers.

In specific sectors, copper stands out. The United States applied its 50% tariff on copper products from August 2025, justifying them as national security measures under Section 232. India, which sought consultations at the World Trade Organization, maintains the actions are safeguard measures, but Washington firmly rejects this position, aiming to reduce dependency on foreign copper for critical industries including defense and infrastructure.

As exports to the United States tumble—engineering goods alone saw a 9.4% year-on-year drop in September—the shockwaves are pushing Indian business to pivot aggressively. Trade delegations are heading to Moscow, according to Economic Times, seeking to expand in Russia and soften the blow of lost US sales.

President Trump, meanwhile, remains defiant. The Financial Express reports that he continues to defend his tariff policy, promising economic dividends for Americans while dismissing critics as fools. He claims the tariffs are central to restoring fairness and powering America's wealth, even as legal and political challenges intensify.

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India has been thrust into the heart of America’s tariff battles, with President Donald Trump escalating his trade war in late August by imposing a sweeping 50% tariff on nearly all Indian exports to the United States. This unprecedented move comes after months of tense negotiations, broken deals, and failed expectations on both sides. According to the Associated Press and The Good Men Project, the White House executed a two-stage approach—first, a 25% reciprocal tariff was applied effective August 7, then a separate 25% penalty was imposed from August 27, explicitly tied to India’s continued purchases of Russian oil, making American tariffs on Indian goods the highest of any major trading partner.

Indian officials estimate these combined tariffs will impact $48.2 billion worth of exports, threatening job losses across sectors like textiles, gems and jewelry, leather goods, food, and automobiles. The pharmaceutical and electronics industries saw exemptions, providing some relief, but key labor-intensive exporters warn that the new duties make shipping to the US commercially unviable. Puran Dawar, Council for Leather Exports Chairman, calls the move “an absolute shock,” noting that both Indian businesses and American consumers will bear the brunt as higher prices ripple through supply chains.

New Delhi has protested that this “fee trade,” as economist Michael Ashley Schulman called it in an August interview, is a two-pronged maneuver—classic protectionism dressed as fairness and a geopolitical lever to punish India's strategic decisions. Trump himself justified the tariffs as restoring US manufacturing and fixing trade imbalances, but his administration swiftly tightened enforcement by adding hundreds of everyday items, giving importers and customs brokers almost no time to adapt. As a result, some supply chains are rerouting toward Mexico and Southeast Asia, away from India.

India’s negotiating stance turned defensive after last-minute failed deals, as reported by The Daily Star. Despite technical agreements and offers to reduce tariffs on US cars and alcohol and ramp up energy and defense imports, the US demanded more concessions. President Trump’s style—preferring headline-grabbing announcements—left Indian negotiators scrambling. Ultimately, India’s exports to the US hit $8.44 billion in January 2025, up sharply from $6 billion the prior year, but future growth is in serious jeopardy.

Perhaps most dramatically, President Trump is promising American voters a $2,000 “Tariff Dividend” payment, supposedly funded from new tariff revenue, even as legal challenges reach the US Supreme Court. The White House maintains its commitment to the India partnership, but the days of friendshoring have been replaced by “tariff-challenged” trade.

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Today on India Tariff News and Tracker, we’re diving deep into the latest developments shaping the US-India trade relationship, with tariffs making major headlines as we approach the end of 2025.

Nearly a tenth of India’s total exports to the United States, representing about $8.3 billion in trade, remain under threat from tariffs imposed under US law. According to Moneycontrol, even as the Supreme Court reviews the legality of former President Donald Trump’s controversial tariffs, duties levied under Section 232 of the US Trade Expansion Act of 1962 are expected to stick around. These Section 232 tariffs—targeting imports considered critical to US national security, such as steel, aluminium, automobiles, timber, copper, and machinery—have a significant impact on India, which relies heavily on the American market for these products. Steel, aluminium, and automobiles together make up more than 85% of the Indian exports still at risk, and the US remains India’s single largest importer for many of these sectors.

Trade negotiations between India and the US remain active. The Economic Times reports that Donald Trump, speaking at a White House event this week, hinted that a visit to India could happen next year. He called his relationship with Prime Minister Narendra Modi strong and said that talks on a comprehensive trade agreement are “going great.” Notably, high-level negotiations to double bilateral trade volumes—from $191 billion to a projected $500 billion by 2030—have already completed five rounds since March, with an initial deadline to reach a deal set for fall 2025.

Progress toward a new deal is seen as vital because US tariffs on Indian shipments currently stand as high as 25%—with a further penalty of 25% tied to India’s Russian oil purchases. Trump continues to press India to decrease its dependence on Russian energy and pivot toward the US and allied suppliers.

In the meantime, these tariffs are having a very real impact at the consumer level. The Economic Times recently highlighted how Indian restaurants and retailers across New York are struggling with increased prices for spices, rice, and pulses due to these heightened tariffs. This spike in costs is squeezing profit margins and forcing business owners to make tough decisions about passing costs along to customers.

As of today, there’s still no breakthrough, but diplomats on both sides remain optimistic. Commerce Minister Piyush Goyal says talks are “going on very well,” though the issues at stake—ranging from tariffs to technology transfer to visa policy—remain complex and sensitive. Both nations appear committed to finding common ground for a sustainable long-term partnership.

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Welcome to the India Tariff News and Tracker podcast, where we bring the latest headlines and analysis about US-India trade and tariff developments. Today, November 5, 2025, we're tracking some of the most significant moves on the tariff front between Washington and New Delhi.

In August 2025, President Trump’s administration escalated trade tensions by slapping an additional 25 percent duty on Indian goods, bringing total US tariffs on many Indian exports up to 50 percent. This hike was a direct response to India’s ongoing purchases of Russian oil, despite pressure from Washington. The policy shift has left some Indian sectors reeling, as higher tariffs have made goods like textiles, engineering products, and specialty chemicals less competitive in the US market. According to Nifty Trader, the United States is now collecting tariff rates of up to 50 percent on many Indian imports, a rate doubled earlier this year specifically as retaliation for India's foreign policy decisions.

Meanwhile, the White House says that President Trump is still keen on maintaining strong diplomatic ties with India, and trade teams from both countries are holding what spokesperson Karoline Leavitt described as “very serious discussions” on the subject. She noted that Trump and Prime Minister Modi have spoken frequently, most recently during Diwali celebrations at the White House, underscoring the ongoing importance of this relationship despite rising economic tensions. NDTV reports that both leaders have signaled interest in working toward a new trade deal, though negotiations have become significantly more complex with the current tariff regime.

Piyush Goyal, India’s Commerce Minister, recently said that discussions are intense and ongoing but highlighted several “sensitive and serious issues” that need resolution before a comprehensive deal can be reached.

Ratcheting up the stakes further, Fortune India reports that earlier this year Trump also imposed a 10 percent reciprocal tariff on nearly all imports, with the 50 percent rate applied to countries like India. The move has spurred legal challenges in the US Supreme Court, which began hearings to assess the legality of these sweeping tariffs. Trade analysts warn that the eventual verdict could reshape US-India Free Trade Agreement negotiations and set important precedents for global trade partnerships.

While US tariff revenue now reportedly tops one percent of GDP, according to Brookings, economists warn that such measures are an inefficient way to raise government funds and can do lasting damage to long-term trade relationships. In retaliation, New Delhi has been eyeing alternative markets and diversifying its export partnerships, trying to shield its economy from the brunt of these tariffs.

That wraps up today’s edition of India Tariff News and Tracker. Thank you for tuning in, and don’t forget to subscribe for the latest developments in US-India trade relations. This has been a quiet please production, for more check out quiet please dot ai.

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