Trade Tensions — India-US Talks Continue Amid Looming Tariffs

Rising trade tensions between India and the United States took center stage as Foreign Minister Subrahmanyam Jaishankar announced that discussions are ongoing, even as new U.S. tariffs of up to 50% loom on the horizon. These punitive measures stem from India’s increased procurement of Russian oil, prompting Washington to escalate existing trade penalties .

Currently, a 25% tariff is already in place, with another set to roll out on August 27. The unfolding situation has raised concerns across India's agricultural and manufacturing sectors, as both stand to be significantly impacted. Jaishankar emphasized that India will defend its farmers and small producers, even as a scheduled U.S. trade delegation visit was canceled, dimming hopes for a swift resolution. According to analysts, the implementation of these tariffs could shave up to 0.8 percentage point off India’s GDP growth and erode its appeal as a global manufacturing destination.