India is facing one of the toughest trade crackdowns in its history. The United States has announced an additional 25% tariff on all Indian-origin goods, effective from Wednesday (27 August), pushing total duties as high as 50%. Washington’s move, triggered by New Delhi’s increased purchases of Russian oil, is already sending shockwaves through India’s economy. The rupee has slipped, stock markets are unsteady, and exporters warn of mounting challenges ahead.
Indian officials argue the measures are unfair, pointing out that Europe and China have not faced similar penalties despite their energy ties to Moscow. Foreign Minister Subrahmanyam Jaishankar insists that negotiations with Washington are ongoing, but progress has been slow.
Prime Minister Narendra Modi is preparing to head to China for the Shanghai Cooperation Organisation summit, where New Delhi is expected to signal its intent to deepen ties with Asian partners. Analysts suggest India could seek fresh trade partnerships across Latin America and the Middle East as it braces for prolonged pressure from Washington.
Tonight on NewsHour, we speak to correspondents in New Delhi and Washington to unpack what these tariffs mean for India’s economy, its global partnerships, and its future trade strategy.
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