India faces a diplomatic rethink as Trump imposes tariffs and China reaches out, but history reminds New Delhi not to trust either blindly
The additional 25 per cent tariff imposed by US President Donald Trump on India for its purchases of Russian oil came into effect Wednesday, bringing the total amount of levies imposed on New Delhi to 50 per cent. The Department of Homeland Security (DHS), in a draft order published on Monday, said the increased levies would hit Indian products that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time on August 27, 2025. Trump had announced reciprocal tariffs of 25 per cent on India that came into effect on August 7, when tariffs on about 70 other nations also kicked-in. On August 7, the US president announced doubling tariffs on Indian goods to 50 per cent for India's purchases of Russian crude oil, but gave a 21-day window to negotiate an agreement. On Monday, Prime Minister Narendra Modi asserted he can't compromise on the interests of farmers, cattle-rearers, small-scale industries, cautioning "pressure on us may .
New Delhi is now left with the surprise imposition of a 25 per cent tariff on Indian goods from Friday, along with unspecified penalties over oil imports from Russia
It's become urgent for New Delhi to make its case to Washington after being unexpectedly slapped with a 25% tariff, one of the highest in the region, facing further threats over its ties with Russia
While the higher tariffs for US markets are a big economic challenge, they also create opportunities for innovative solutions that may take India on a higher growth trajectory
Open access to US and EU markets will make India a highly attractive destination for global investors, says Finance Commission Chairman Panagariya
India and the US teams have concluded the fifth round of talks for the proposed bilateral trade agreement (BTA) in Washington on July 17, an official said. The negotiations were held for four days (July 14-17) in Washington. "The Indian team is coming back," the official said. India's chief negotiator and special secretary in the department of commerce Rajesh Agrawal leads the team for negotiations. These deliberations are important as both sides are looking at finalising an interim trade deal before August 1, which marks the end of the suspension period of the Trump tariffs imposed on dozens of countries including India (26 per cent). On April 2 this year, US President Donald Trump announced these high reciprocal tariffs. The implementation of high tariff was immediately suspended for 90 days till July 9 and later till August 1 as America is negotiating trade deals with a number of countries. Issues related to agriculture and automobiles are learnt to have figured during the fif
India and the US are working to finalise an interim trade pact by fall 2025 as negotiators prepare for talks in Washington amid Trump's reciprocal tariff warnings
The remarks came just a day after the US leader said he was close to finalizing a trade deal that New Delhi hopes would give it reprieve from 26 per cent reciprocal tariffs
The push comes as Trump announced an agreement with Vietnam that cuts US tariffs on many Vietnamese goods to 20 per cent from his previously threatened 46 per cent
Jaishankar also met US Secretary of Defence Hegseth, where he highlighted the importance of India-US defence ties, callingh them 'one of the most consequential pillars' of the bilateral relationship
Defence Minister Rajnath Singh on Tuesday spoke to US Defence Secretary Pete Hegseth and appreciated the "unwavering support" the US extended to India in its fight against terrorism. In their phone conversation, Singh and Hegseth discussed a wide range of issues -- from long-term cooperation in the defence sector, including training and military exchanges, to expanding industry collaborations. "Excellent discussion to review the ongoing and new initiatives to further deepen India-US defence partnership and strengthen cooperation in capacity building," Singh said in a social media post. "Conveyed my deep appreciation for the unwavering support extended by the US to India in its fight against terrorism. Looking forward to meet him at an early date," he said. The defence ministry said Singh and Hegseth agreed to further build upon the momentum of the "critical and mutually beneficial" partnership across all its pillars. "The two leaders discussed a wide canvas of issues ranging from
Trade officials from India and the US met in New Delhi for about a week to discuss issues including greater market access, digital trade, customs rules and technical barriers to trade
Strategic experts on Friday discussed the contours of the current India-US relationship, with some saying that it was a moment where the ties are being "tested", while others said one should not get swayed by words like "transactional" being used by many to describe it. The online panel discussion saw participation from members of some of the think-tanks based in Delhi and Washington. The topic was 'Negotiating a Transactional Relationship: India and the US', and the discussion was hosted by Delhi-based Centre for Land Warfare Studies (CLAWS). Elizabeth Threlkeld, a Senior Fellow and Director of the South Asia Program at the Stimson Center in Washington, emphasised the broader "momentum and continuity in the relationship" between India and the US. The online event was held nearly a month after the cessation of firing and military action between India and Pakistan after a four-day military conflict. While the US has claimed that it played a role in this cessation, India has asserted
The talks are still ongoing and there's no clarity if the Trump administration has agreed to a three-stage process for a trade deal
India should take cues from the US-UK trade pact and exercise caution while negotiating an agreement with America to ensure that the deal is reciprocal, balanced, and not driven solely by political considerations, economic think tank GTRI said on Saturday. The limited trade deal announced between the US and UK on May 8 offers clues about the kind of trade arrangements Washington may pursue with other major partners, most notably India, the Global Trade Research Initiative (GTRI) said. A closer look reveals that while the UK has made sweeping tariff concessions to America, the US has offered far less in return, it added. "If the UK-US deal sets the template, India can expect growing US pressure to finalise a mini-deal of its own - focused on tariff cuts and key strategic commitments rather than a full free trade agreement (FTA) that may come much later," the think tank said. It also cautioned that India may be asked to reduce tariffs on a basket of sensitive agricultural products, .
India has offered preferential access to nearly 90% of goods imported from the United States, including the reduced tariffs, one of the two officials said
India has already made a number of offers and pre-emptive concessions to the US on trade, showing itself more eager than several other big US trading partners
For Vance, this is an opportunity to soften a global image as Trump's attack dog. It is his first visit to India since taking office
While tariff is important, the bilateral trade agreement between India and the US should focus more on non-tariff barriers, a top official of Semiconductor Industry Association said on Friday. India can have a higher share in the USD 600 billion semiconductor market if it plays the cards right, Semiconductor Industry Association (SIA) President and CEO John Neuffer said during a panel discussion at Global Technology Summit organised by Carnegie India. "As we think about our bilateral future and our cooperation within the BTA (bilateral trade agreement), we shouldn't over-index on the tariff piece of it. There's no doubt about it, that's really important, but more emphasis needs to be given to the non-tariff barriers. That's been talked about in Washington quite a bit. There's customs problems, there's siting regulations that need to be streamlined," Neuffer said. India and the US are holding discussions for a bilateral trade agreement (BTA) to rationalise import taxes in the ...