August 14, 2025

In a sizzling trade showdown, US President Donald Trump has doubled tariffs on Indian goods to a whopping 50%! This dramatic hike, announced last week, targets India’s purchase of Russian oil and has sent shockwaves through India’s economy and politics. The tariffs came in two waves: an initial 25% charge took effect on August 7, with the next 25% set to hit by August 27. This hefty tariff package has slammed more than half of India’s merchandise exports to the US, but luckily, pharma and electronics exports are still untouched—for now. India’s government quickly fired back, calling the tariffs "unfair, unjustified and unreasonable". The Ministry of Finance revealed in Parliament that about 55% of export value faces these cuts. But India isn’t backing down. Union Agriculture Minister Shivraj Singh Chouhan urged farmers not to fear, saying, "We will explore new markets. India’s 140 crore population is a strength, not a weakness." Meanwhile, External Affairs Minister S Jaishankar stressed the need for "atmanirbharta" or self-reliance to face such global shocks. He said, "It is the basis to strengthen our self-confidence, increase our resilience, and lay the foundation for Viksit Bharat." Farmers and workers across Himachal Pradesh joined nationwide protests against US tariffs and the government’s ‘anti-farming’ policies. Sohan Singh Thakur of the Himachal Pradesh Apple Growers’ Association said, "We demonstrate against anti-farmer policies and land evictions." On the diplomatic front, India and China are working to restore economic ties strained by past clashes, resuming direct flights by September. This comes as Modi plans to visit the US for the UN General Assembly in September, where he may meet Trump amid the tariff heat. In a twist, S&P Global Ratings Director YeeFarn Phua said the tariffs “will not impact India’s growth,” citing India’s low export-to-GDP ratio (just about 2%). But the mood among fund managers has flipped dramatically, as a recent survey shows India went from being the top Asian market pick to the least preferred in just three months. Trump branded his tariff move a “big blow” to Russia’s economy because of India’s role as a major buyer of Russian oil. Political leaders worldwide reacted: Brazil promised $5.5 billion aid for firms hit by US tariffs, Israel called for a quick resolution, and South Africa sought a new trade deal to avoid similar tariffs. The US tariff saga has even sparked lively debates on social media, with Trump criticizing Goldman Sachs CEO for "bad predictions" about tariffs. The rupee slipped slightly amid concerns, but Indian stock markets showed resilience, opening higher on softer US inflation and hopes of Fed rate cuts. India’s resilience is on display as it navigates these tariff storms with bold protests, diplomatic engagements, and plans to boost internal markets. Will this tariff tussle push India toward a more self-reliant future, or will thawing ties with the US calm the trade winds? One thing’s sure — the global trade drama just got masaledar!

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Tags: India-us tariffs, Donald trump, Indian exports, Trade tensions, Atmanirbharta, Modi trump meeting,