Trump’s 50% Tariff on India Takes Effect, New Delhi Calls Move “Unjustified” | How Trade Talks Collapsed
New Delhi, August 27, 2025.
Effective Wednesday, August 27, US President Donald Trump’s additional 25% tariffs on Indian goods have taken effect, doubling total import duties to 50%. The Trump administration has linked this decision to India’s continued purchases of Russian oil. New Delhi has strongly rejected the move, calling the tariffs “unjustified and unacceptable.”
With this decision, India now faces tariff levels comparable to Brazil and China—among the highest in the world.
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How the Trade Rift Escalated – A Timeline
February 2025
- Prime Minister Narendra Modi and President Trump met in Washington. Both sides agreed to work toward a limited trade deal by fall and expand bilateral trade to $500 billion by 2030.
- India pledged to increase US energy imports.
March
- Commerce Minister Piyush Goyal visited Washington for talks with US Commerce Secretary Howard Lutnick and US Trade Representative (USTR) Jamisen Greer.
- US officials later visited New Delhi.
- The USTR’s annual report flagged India’s tariffs, data policies, and intellectual property barriers.
- Both sides claimed talks were “progressing well.”
April
- US Vice President JD Vance visited India.
- A framework for trade talks was said to have been finalized, with speculation that a deal could be signed before July 9.
May
- Piyush Goyal and India’s chief negotiator Rajesh Agrawal returned to Washington. Hopes for a breakthrough remained high.
June
- US Commerce Secretary Lutnick said a deal was close.
- President Trump promised a “big trade deal soon.”
- By late June, however, Indian officials signaled deadlock—particularly over agriculture and dairy tariffs.
- PM Modi declined Trump’s dinner invitation, prioritizing his Odisha visit instead.
July
- The Indian delegation returned home.
- Goyal said India would not “rush into a deal for deadlines’ sake.”
- The fifth round of talks again ended without results.
- In Parliament, Modi said “no global leader asked India to halt any operation,” seen as a swipe at Trump’s claims of mediation tied to trade talks.
- On July 31, Trump announced 25% tariffs would take effect from August, along with a “penalty” for India’s Russian oil purchases.
August
- August 7: First wave of 25% tariffs took effect. On the same day, Trump announced an additional 25% duty tied to Russian oil trade.
- PM Modi said, “India will not compromise its farmers, no matter the heavy price.”
- India slammed US tariff policy as “unfair and unjustified,” arguing it was wrongly linked to foreign policy issues.
- Modi also announced his first visit to China in 7 years.
- A planned US trade delegation visit (August 25–29) was cancelled, Reuters reported.
- On August 22, White House adviser Peter Navarro accused India of “cozying up” to Chinese President Xi Jinping and criticized New Delhi for continuing oil trade with Russia.
August 27
- The second 25% tariff came into effect, bringing total levies to 50%—among the steepest duties ever imposed by the US on a major trade partner.
India’s Response
India has made it clear it will not bow to US pressure. The Ministry of External Affairs condemned the move as “unjustified, unilateral, and in violation of trade commitments.” Officials stressed India would not compromise on farmers’ interests or its energy security needs.
Editor-in-Chief- Vijay L Chaurasiya