According to US officials, the initial 25% tariff came into effect on 7 August. The additional levy will take effect in 21 days and apply to all Indian goods entering US ports
President Donald Trump has said there will be no trade negotiations with India until a dispute over tariffs is resolved, following his administration’s decision to double tariffs on Indian imports.
The White House on Wednesday issued an Executive Order imposing an additional 25 percentage points in tariffs on Indian goods, raising the total levy to 50%. The administration cited national security and foreign policy concerns, pointing specifically to India’s ongoing imports of Russian oil.
The order claims that these imports, whether direct or via intermediaries, present an “unusual and extraordinary threat” to the United States and justify emergency economic measures.
According to US officials, the initial 25% tariff came into effect on 7 August. The additional levy will take effect in 21 days and apply to all Indian goods entering US ports — with exceptions for items already in transit and certain exempt categories.
The order also provides flexibility for the president to modify the measures, depending on changing geopolitical circumstances or retaliatory actions by India or other nations.
India’s Prime Minister Narendra Modi responded defiantly during a speech at the MS Swaminathan Centenary International Conference in New Delhi, signalling that New Delhi would not back down in the face of economic pressure.
“For us, the interest of our farmers is our top priority,” PM Modi said. “India will never compromise on the interests of farmers, fishermen and dairy farmers. I know we will have to pay a heavy price for it, and I am ready for it. India is ready for it.”
India has consistently pushed back against opening sensitive sectors such as agriculture and dairy to international competition, citing the potential impact on millions of rural livelihoods.
The standoff marks a sharp escalation in trade tensions between the two countries, as both sides dig in over economic policy and matters of national interest.
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‘India is strategic partner’
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Meanwhile, the statement department on Thursday stated that “India is a strategic partner” and that the US is engaging with India in “full and frank dialogue” even as relations between the two countries continue to witness tension amid the tarriff dispute
On being asked whether China and other BRICS nations are trying to take the lead in organising a pushback against US trade measures, the US State Department said the dialogue with India “will continue”.
Responding to reporters during a press briefing, Principal Deputy Spokesperson for the US Department of State, Tommy Pigott, said, “What I can say in terms of India is, the President has been very clear in terms of the concerns he has regarding the trade imbalance, regarding the concerns he has when it comes to the purchase of Russian oil. You have seen him take action directly on that… India is a strategic partner with whom we engage in a full and frank dialogue. That will continue”.
When asked if there were concerns in Washington about “worsening ties” with India and the possibility of New Delhi “moving closer” to China, Pigott stressed the importance of addressing differences through direct engagement.
“This is about an honest, full and frank dialogue about real concerns that this administration has, that the President has outlined very clearly. Addressing those concerns through his actions, he’s spoken about them, whether it’s about the purchase of Russian oil or about the trade imbalance. Addressing those concerns is important. The President has been very clear. Ultimately, this is about a frank and full dialogue. That’s what it means to advance American interests, that’s what it means to have full diplomatic dialogue with partners to address concerns that we need to see addressed.”
Earlier in the day, US President Donald Trump said there will be no trade negotiations with India until a dispute over tariffs is resolved, following his administration’s decision to double tariffs on Indian imports.
When pressed by ANI at the Oval Office,whether he expected talks to resume in light of the new 50% tariff.
“No, not until we get it resolved,” he replied.
The White House on Wednesday issued an Executive Order imposing an additional 25 percentage points in tariffs on Indian goods, raising the total levy to 50%. The administration cited national security and foreign policy concerns, pointing specifically to India’s ongoing imports of Russian oil.
The order claims that these imports, whether direct or via intermediaries, present an “unusual and extraordinary threat” to the United States and justify emergency economic measures.
