US EditionThe U.S.-India Trade Spat Boils Over
INDIA, AUG 6 – The 50% tariff threatens to reduce Indian exports to the U.S. by up to 50%, affecting $86.5 billion in annual shipments, amid disputes over Russia oil purchases.
- On August 6, 2025, President Donald Trump issued an executive order imposing an additional 25% tariff on India, raising total duties to 50%, effective August 27.
- Amid U.S. grievances, India contended it was buying Russian oil under a G-7 approved price cap to stabilize global energy markets.
- Federation of Indian Export Organisations head S.C. Ralhan warned that nearly 55% of shipments to the U.S. will be affected and that tariffs threaten most of India's $86.5 billion in exports.
- Following the announcement, oil prices edged up about 1% on Aug. 6, and Mayuresh Joshi said `While markets have already started pricing in the risk of a sharp tariff hike, a near-term knee-jerk reaction is inevitable unless there’s swift clarity or a breakthrough in negotiations`.
- Negotiations expected in the coming weeks, with the GTRI advising India to avoid retaliation for at least six months and continue strategic engagement.
43 Articles
43 Articles
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Malay Mail
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