This August marked a significant shift in international trade relations as U.S. President Donald Trump implemented a 25% tariff on a broad range of Indian exports. This measure was further amplified by an executive order targeting “Threats to the U.S. by the Government of the Russian Federation,” which imposed an additional tariff on top of the initial 25% levy. President Trump justified these actions by highlighting India’s existing tariff and non-tariff trade barriers, as well as its engagements with Russia concerning energy resources and military hardware. Consequently, the cumulative tariff on most Indian products, with very few exceptions, skyrocketed to an imposing 50%.
In response to these escalating trade tensions, the Indian government has renewed its focus on the ‘Swadeshi’ (self-reliance) philosophy. Prime Minister Narendra Modi has actively championed the “Vocal for Local” campaign, urging citizens to prioritize and purchase domestically produced goods to lessen the nation’s dependency on exports and bolster local industries.
For the fiscal year 2025, India’s exports to the United States exceeded an impressive $86 billion, while imports from the U.S. stood at $45 billion. These figures underscore the U.S.’s crucial role in India’s trade landscape, accounting for approximately 20% of India’s total exports and 6.3% of its imports.
This comprehensive package features in-depth ground reports and insightful analyses, meticulously detailing the widespread repercussions of these tariffs across various sectors of the Indian economy.