August 17, 2025

Students from Gurukul School of Art proudly carried a bright poster of India's Prime Minister Narendra Modi and U.S. President Donald Trump outside their school, but tensions between the two giants are boiling beneath the surface. The planned visit by U.S. trade officials to New Delhi from August 25 to August 29 has been suddenly called off, NDTV Profit revealed, citing sources close to the situation. Why this last-minute change? The answer lies in the growing trade war. President Donald Trump has slapped a heavy 25% tariff on Indian exports. But wait, he didn't stop there! An additional 25% tariff is set to kick in on August 27, as a sharp 'penalty' for India buying crude oil and military gear from Russia. This piles up to a staggering 50% duty, one of the highest the US has ever charged on any trading partner. India is not taking this attack lightly. The government has fired back, saying, "It is revealing that the very nations criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion [for them]," as stated by the Ministry of Foreign Affairs earlier this month. Both India and the US remain in touch, but the fresh schedule for talks is still nowhere in sight. Imagine the stakes — the US is India’s biggest export market, soaking up about 20% of Indian goods, worth $86.51 billion in the fiscal year ending March 2025. This tariff blow could shake the trade bridge between the two nations tremendously. There was no immediate comment from India’s Ministry of Commerce and Industry or the U.S. Trade Representative’s office when CNBC reached out. So, will the fiery tariffs cool down or spark more trouble? Stay tuned as this high-stakes trade drama unfolds!

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Tags: India-us trade, Donald trump, Tariffs on india, Russia oil sanctions, India export, Trade relations,