Trump Tariffs Highlights: As 50% tariffs begin, US treasury secy sends positive signal: ‘At end of day, we will come together’

As tariff tensions escalated on Wednesday with Washington imposing an additional 25 per cent penalty on New Delhi over its purchase of Russian oil and defence equipment, US Treasury Secretary Scott Bessent voiced confidence in bilateral ties.

“I do think India’s the world’s largest democracy, the US is the world’s largest economy. I think at the end of the day we will come together,” Bessent told Fox Business.

On the stalled trade deal, he said, “We still don’t have a deal… I thought we would have a deal by May or June. The Indians tapped us along in negotiations. There’s also that aspect of Russian crude purchases which they have been profiteering on.”

Bessent added that President Donald Trump and Prime Minister Narendra Modi enjoy a “very good rapport at the top level,” but warned India about its trade surplus and “very high tariffs”.

The steep US tariff will hit India’s agriculture, textile and pharmaceutical sectors, economist Utsa Patnaik warned, calling it a “desperate attempt” by Washington to escape its own crisis.

“His actions reflect the fact that US consumers are in a state of crisis,” Patnaik said of President Donald Trump’s tariffs, citing Joseph Stiglitz’s estimate that “the real wage of the American worker has actually gone down during the neoliberal era.”

She said US surpluses in wheat and dairy were being pushed on developing countries: “They will always hammer away, saying, Open your markets.” Apple farmers in Himachal Pradesh, she noted, had already suffered after India allowed US fruits and nuts.

“With the 50 per cent tariff already, the adverse impact is going to be very severe,” she said, adding: “It’s a kind of new economic freedom struggle, where boycotting imports is in the interest of our farmers and workers. Let’s boycott.” (PTI)

Levies on India, the world’s fifth-largest economy, are now among the highest the United States charges across all countries. How other countries fare

Imposition of 50 per cent tariffs on Indian goods should be a wake up call for New Delhi, which should not yield to global pressure, former Niti Aayog CEO and former G20 Sherpa Amitabh Kant said on Wednesday.

In a post on X, Kant said it was quite "ironical" for the US to impose such levies on India, amid Washington's continuous negotiations with Russia and China, even as Beijing remains the largest buyer of Moscow oil.

"Trump's tariffs must be a wake-up call for India. The irony is striking: the U.S. is actively negotiating with Russia and China, the latter being the largest buyer of Russian oil, yet chooses to target India with tariffs instead," he wrote.

With the steep 50 per cent tariffs kicking in, India’s exports of low-margin and labour-intensive goods ranging from apparel, textiles, gems and jewellery to shrimps, carpets and furniture, are set to become unviable in the American market, jeopardising low-skilled jobs in India.

The impact to the economy as a whole might be somewhat overstated, given that exports to the US accounts for less than 2 per cent of India’s GDP and that nearly 40 per cent of export sectors including pharma and electronics are exempted from the punitive tariffs for now.

A UN postal agency said Tuesday that 25 member states have suspended goods consignments to the US after President Donald Trump’s administration scrapped a customs rule exempting small packages from duty.

The Universal Postal Union, based in Switzerland, said it raised concerns in a letter to Secretary of State Marco Rubio on August 25. While the agency did not list countries, Australia, Norway and Switzerland have already confirmed suspensions.

The move follows the Trump administration’s decision to end the global “de minimis” exemption for shipments under $800, effective August 29. (Reuters)

The Commerce Ministry said about $48.2 billion worth of India’s merchandise exports to the US (based on 2024 trade data) will face additional tariffs.

According to the US draft order, Indian goods already shipped and in transit before 12:01 am (EDT) on August 27, 2025 will be exempt from the new 50% tariff, provided they are cleared for entry or removed from a bonded warehouse for consumption before 12:01 am (EDT) on September 17, 2025. Importers must also certify this by declaring a special code to US Customs.

What has 10 legs, two antennae and flesh so sweet, juicy and valuable that it is at the heart of one of the most heated battles in the US’s tariff war against India? From shrimp gumbo and popcorn shrimp to shrimp cocktail and the classic shrimp boil, Americans can’t get enough of this crustacean. It comprises about 90 per cent of the US’s total seafood consumption; the seemingly bottomless appetite for it reportedly drove the restaurant chain Red Lobster to file for bankruptcy thanks to an all-you-can-eat promotion on shrimp. With about 40 per cent of this demand being fed by farmers in India — Andhra Pradesh alone accounting for about 70 per cent of the total output — shrimp has become something of an MVP in US-India trade relations, with significant domestic fallout in both countries.

Read the full opinion HERE

With the US set to impose steep 50% tariffs on Indian goods from Wednesday, India’s exports of labour-intensive items such as textiles, gems and jewellery, shrimp, carpets and furniture risk becoming unviable in the American market, threatening hundreds of thousands of low-skilled jobs. A Global Trade Research Initiative (GTRI) report estimates India’s exports to the US could plunge from $87 billion in FY25 to $49.6 billion in FY26, with 66% of shipments hit by tariffs.

Which sectors in India would be hit hard, which remain safe for now

Sectors hit hard by Trump’s 50% tariffs

Sectors relatively safe (no tariffs for now)

Full report HERE

Prime Minister Narendra Modi on Tuesday said India’s focus will now shift towards futuristic industries while also strengthening sectors where the country has already performed well.

Speaking after flagging off Maruti Suzuki’s first battery electric vehicle (BEV), the e-Vitara, in Ahmedabad, the Prime Minister stressed the importance of Mission Manufacturing.

"In the coming time, our focus will be on futuristic industries. In the semiconductor sector, India is taking off... The Indian government is also aware of the shortage of rare earth magnets for the auto industry. To increase the capacity of the industry in this direction, we have also launched the National Critical Mineral Mission. Under this, more exploration missions will be conducted at different places in the country, and critical minerals will be discovered..." PM Modi said.