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Hello, and welcome to NDTV Profit's live coverage on the latest levies imposed by American President Donald Trump on India. Trump has slapped an additional 25% tariffs on India for the purchase of Russian crude oil, the White House said in a statement on Wednesday.
This comes a week after he announced 25% reciprocal tariffs against the country, starting from Aug. 7. Stay tuned for all the latest details on Delhi-Washington trade relations with NDTV Profit.
This additional 25% tariff will come into effect from Aug. 27, as per the executive order. This development comes a week after Trump announced 25% reciprocal tariffs India citing India's "trade barriers" and the wide "trade deficit" in the India-US trading relations.
The total 50% tariff brings India in line with China, which is currently facing a 51% tariff, and Brazil, taxed at 50%, making it among the highest imposed tariff without a bilateral agreement in place.
"The ‘law of unintended consequences’ seems to be operating stealthily in the prevailing tariff war unleashed by the U.S.," tweeted the founder of the Mahindra Group.
"Shouldn’t India too seize this moment to shape a virtuous consequence for itself? Just as the 1991 forex reserves crisis triggered liberalisation, can today’s global ‘Manthan’ over tariffs yield some ‘Amrit’ for us?" he asks.
The ‘law of unintended consequences’ seems to be operating stealthily in the prevailing tariff war unleashed by the U.S.
— anand mahindra (@anandmahindra) August 6, 2025
Two examples:
The EU may appear to have accepted the evolving global tariff regime, responding with its own strategic adjustments. Yet the friction has… pic.twitter.com/D5lRe5OWUa
"It is extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest," said an official statement from the Government of India.
"India will take all actions necessary to protect its national interests."
"The United States has in recent days targeted India’s oil imports from Russia.
2. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India.
3. It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.
4. We reiterate that these actions are unfair, unjustified and unreasonable.
5. India will take all actions necessary to protect its national interests."
Here are the countries slapped by the steepest levies from Washington:
India – 25% + 25% = 50%
Brazil – 50%
Syria – 41%
Laos – 40%
Myanmar – 40%
Switzerland – 39%
Canada – 35%
Iraq – 35%
Serbia – 35%
Algeria – 30%
Libya – 30%
Bosnia & Herzegovina – 30%
South Africa – 30%
Note: Tariff on China is paused and thus not mentioned here.
Apple is set to be largely unaffected by US tariffs on India, reported CNBC citing White House officials.
As per Global Trade Research Initiative:
Fresh tariffs place India among the most heavily taxed US trading partners, far above rivals such as China, Vietnam, and Bangladesh.
In 2024, China's Russian oil imports stood at $62.6 billion, more than India’s $52.7 billion and yet faces no such penalties.
India could think of not buying Russian oil if economically viable, but should not abandon simply to satisfy Washington.
India should remain calm, avoid retaliation for at least six months.
US action will push India to reconsider its strategic alignment, deepening ties with Russia, China, and many other countries.
Here are the top commodities exported from India to the US in the April-June quarter of the current fiscal:
Here are the top commodities exported from India to the US in the April-June quarter of the current fiscal:
Source: Directorate General of Commercial Intelligence and Statistics
Here are the countries from which the US imports most of its trade.
Here are the countries from which the US imports most of its trade.
Data compiled by NDTV Profit.
Malaysia is facing the same 25% levy as India. Meanwhile, Sri Lanka has been slapped with 30% tariffs, placing it among the hardest hit in the region.
"The countdown to dollar losing its dominance and reserve currency status has begun," said Gurmeet Chadha in a post on X.
The countdown to dollar losing its dominance and reserve currency status has begun.
— Gurmeet Chadha (@connectgurmeet) August 6, 2025
Financial system and international trade works on Trust.
This dictatorship and using trade as leverage will do irreparable damage to US in long term even If tariffs are paused/ reversed..
ADR shares of Infosys, Wipro, HDFC Bank, and Dr Reddy's Laboratories dropped after the tariff announcement.
Here's how they fare:
Infosys: down 0.90% to $16.06
Wipro: down 0.93% to $2.655
HDFC Bank: down 0.11% to $75.65
Dr Reddy's Labs: down 1.79% to $13.43
Only ICICI Bank ADR was trading 0.18% higher, at $32.89.
"I don't think, in the long run, US wants a very disrupted trade relation with India since it is a very big market," Santosh Rao, head of research at Manhattan Ventures, said.
Here is what experts think on the impact of the additional tariffs on the Indian and American markets.
At 10:35 pm, Gift Nifty traded around 24,517.50, down nearly 112.50 points, indicating a muted start for the Indian stock market on Aug. 7, 2025.
Here is GTRI's outlook on the impact of the new levies on various export sectors. Some items have been exempted under section 232 of the Trade Expansion Act of 1962.
Here is GTRI's outlook on the impact of the new levies on various export sectors. Some items have been exempted under section 232 of the Trade Expansion Act of 1962.
"It is Donald J Trump who has finally made India pay a price for enabling Putin’s butchery," tweeted Boris Johnson, former Prime Minister of the United Kingdom.
Donald Trump has done the brave, principled and logical thing - finally punishing the countries that have been funding Putin’s vicious war machine by buying Russian oil and gas. When will Britain and the rest of Europe have the guts to do the same? https://t.co/ET2IZlN8Pn
— Boris Johnson (@BorisJohnson) August 6, 2025
The US says it will still impose sanctions on Russia's trading partners despite 'highly productive' talks, reported news agency AFP.
According to India's Directorate General of Commercial Intelligence and Statistics, exports to the US stood at $86.5 billion during the April 2024–March 2025 period, marking a strong 11.61% year-on-year growth. India's total exports for the fiscal 2025 touched $437.5 billion.
The momentum continued in the first quarter of this fiscal as India exported goods worth $20.8 billion to the US, reflecting a 22.2% growth in comparison to the same quarter last year.
Read the whole story here.
Brent crude futures last rose 80 cents, or 1.2%, to $68.44 a barrel, while US West Texas Intermediate (WTI) crude rose 80 cents, or 1.2%, to $65.96. WTI hit an intraday high of $66.75 after Trump's tariff update.
To sum up all the action on the Indo-US trade front today:
US President Donald Trump has imposed an additional 25% tariff on India for its continued purchase of Russian crude oil, the White House said in a statement on Wednesday.
The new tariff will come into effect from Aug. 27, as per an executive order issued by the Trump administration.
This move comes just a week after Trump announced 25% reciprocal tariffs on Indian goods, which will be implemented starting Aug. 7.
In response, the Indian government said it would take all actions necessary to protect the country's national interests.
Indian stocks listed in the US and the GIFT Nifty dropped following the announcement.
Global oil prices rose, with WTI crude hitting an intraday high amid trade developments.
US President Donald Trump, on being asked by reporters during a press briefing whether he would raise tariffs on China similar to India, said that could happen.
"Could happen. Depends on how we do. Could happen," he responded.
"It's only been 8 hours. So let's see what happens. You're going to see a lot more...You're going to see so much secondary sanctions," Trump added, while responding to another question on similar lines.
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