The US has announced a 25% tariff on Indian imports and warned of penalties related to Russian defence and energy purchases, complicating India’s trade deal ambitions with Washington. The move comes just before a key negotiation deadline, putting pressure on India to accelerate talks while defending its trade interests.
India, aiming to maintain its stance—especially on agriculture and WTO-compliant tariffs—is now facing uncertainty in exports, particularly in steel and aluminium sectors. In contrast, China is advancing quickly in its US trade talks, potentially gaining better tariff terms and waivers, giving it a competitive edge.
Economists warn that prolonged uncertainty and potential 100% tariffs could hurt India’s GDP growth. India is now eyeing an interim deal by October, possibly with tariffs between 10–15% and market-opening strategies like quotas. A breakthrough may hinge on direct talks between Indian and US leadership.
