US EditionIndian Businesses in SoCal Brace for 25% Tariff Hike: 'More Expensive to Do Business Day by Day'
INDIA, AUG 1 – The tariff targets India’s continued imports of Russian oil and defense equipment and risks reducing India’s GDP growth to 6.2% in FY26, S&P Market Intelligence said.
- President Trump decided to impose a 25 percent tariff on Indian goods effective August 1, impacting Indian exports amid ongoing trade tensions.
- The tariffs arise from stalled trade negotiations, mainly due to India's refusal to open its agricultural and dairy markets to U.S. products.
- Indian businesses in Southern California, including Pioneer Cash & Carry, face rising costs and must increase prices by about 25 percent starting Monday due to tariffs.
- Mr. Gupta noted that America's 1.5 percent economic growth pales compared to India's 6.4 percent, and that "the ball is still in play, and both sides are working."
- The tariffs could reduce India's GDP growth projections if they remain beyond September 2025, signifying potential economic adjustments and ongoing diplomatic challenges.
11 Articles
11 Articles
Indian businesses in SoCal brace for 25% tariff hike: 'More expensive to do business day by day'
Businesses that rely on goods imported from India are preparing for a 25% tariff to take effect as President Trump's trade war with once-strong trade partners continues.
India, Frustrated by Trump’s Tariff Stance, Nevertheless Optimistic a Better Trade Deal Will Be Reached
While India is viewed as a counterweight to Communist China, its ties to Russia are seen as too close, as Trump sours on Putin over the war in Ukraine. Under Washington pressure it has reportedly started canceling contracts with Russian oil companies.
One word is trending the most across the world today - tariff. America's deadline ended on August 1 and new tariff rates will come into effect from August 7. So far, America has signed trade agreements with only 33 countries. The remaining more than 120 countries, including India, are still out of it.
India's GDP Will Go Below 6.2% in FY26, if 25% US Tariff Continues Post September: S&P Report
Get latest articles and stories on Business at LatestLY. India's not giving market access to the United States (U.S.) in the agriculture and Dairy products sectors is likely to be the reason for not reaching on a trade agreement, noted S &P Market Intelligence report released on Friday. Business News | India's GDP Will Go Below 6.2% in FY26, if 25% US Tariff Continues Post September: S&P Report.
Former US President Donald Trump has recently announced a 25% tariff on Indian exports. But government sources say that its impact on India's economy will be 'very minor'. According to government data, this move will not cause more than 0.2% loss to GDP. An India-based economist also told Bloomberg that GDP may slow down by only 0.3%. Currently, the country's nominal GDP is around ₹ 330.68 lakh crore in 2024-25, so 0.
Coverage Details
Bias Distribution
- 60% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
