US Tariffs Set to Double; Modi Urges India to Stand Strong
US Tariffs Set to Double; Modi Urges India to Stand Strong
US plans a 50% tariff on Indian goods after Trump's push, via a DHS draft taking effect Aug 27, 2025. Modi responds with an independence stance as new development projects open in Ahmedabad.
In response to President Donald Trump's earlier announcement, the United States on Monday published a draft notice from the Department of Homeland Security outlining plans to impose a 50% tariff on Indian goods. According to the notice, Indian products "that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on August 27, 2025, will be subject to the increased levies."
Trump penalized New Delhi for its ongoing purchases of Russian oil earlier this month by imposing high tariffs of up to 50% on Indian goods. The announcement raises the tariff to 50% for a number of products, which is one of the highest rates for any U.S. trading partner.
Modi's Response
Prime Minister Narendra Modi reaffirmed his government's commitment to independence and said India would not yield to outside pressures while visiting Ahmedabad on Tuesday. He also officially opened several development projects.
“For me, the welfare of farmers, cattle rearers, and small industries comes first. The world may try to mount pressure, but we will endure it for the nation’s good,” he said, urging citizens and businesses to place swadeshi products at the core of their choices.
Beginning on August 27, 2025, the United States will impose a 50% tariff on Indian imports, up from the current 25%.
Jaishankar Seeks Greater Russian Investment in India
With the United States seeking to impose a 50% tariff on India, External Affairs Minister S Jaishankar has sought to develop trade links with Russia, urging Russian businesses to work together "more intensively" with their Indian counterparts. Jaishankar said India has a rapidly growing economy, and schemes like "Make in India" have created new opportunities for foreign companies. "In fact, all of that is an invitation to do more," he said.
“An India with a GDP of USD 4 trillion plus growing at 7% for the foreseeable future has an obvious need for large resources from dependable sources. In some cases, it could be assured supplies of essential products, fertiliser, chemicals, and machinery, being good examples. Its rapidly growing infrastructure offers business openings to enterprises with an established track record in their own country,” said Jaishankar.
“The ‘Make in India’ and other such initiatives have opened up new windows for foreign businesses. The modernisation and the urbanisation of India generate their own demands, flowing from shifts in consumption and lifestyle. Each of these dimensions represent an invitation for Russian companies to engage more intensively with their Indian counterparts. Our endeavour is to encourage them to rise to that challenge,” he added.
In order to foster growth and expedite development, Jaishankar advocated for closer cooperation and stated that India is open to considering additional investments, joint ventures, and other types of cooperation.
“It is reasonably evident that there is much that India and Russia can do for each other in promoting growth and accelerating development. What we seek to do as Governments is to provide the guidance and create conditions for economic activities to take place. Clearly much centres around trade but there is growing willingness to contemplate more investments, joint ventures and other forms of collaboration. First DPM Manturov and I are here amongst you to encourage those processes. We want to send a clear message that an enduring strategic partnership must have a strong and sustainable economic component.” he said.
Further speaking about India signing Terms of Reference (ToR) for the India-Eurasian Economic Union on a Free Trade Agreement, Jaishankar said,
” We have today concluded the Terms of Reference for the India-Eurasian Economic Union FTA. That will surely make a difference when concluded. We spoke about motivating joint ventures in key areas where the demand is already established. Some initiatives of significant investment levels were also spoken about. Our skilling and mobility endeavours have started to take off. The desire to improve connectivity is also expressed through multiple options.”
“But in the final analysis, what we really need is for businesses to step forward confidently. Not just that, also ensure that there is a close collaboration between what Governments are discussing and businesses are planning,” he added.
After the US imposed a 25 percent ad valorem duty on Indian goods, Jaishankar made a positive push to boost trade with Russia. The US has since announced an additional 25 percent tariff that will go into effect on August 27, bringing the total duty to 50 percent.
