India faces double tariff, PM Modi doesn’t take Trump call to signal ‘we won’t bow’

Double US tariffs on India came into effect today. In addition to the base 25% tariff, an extra 25% tariff has also been implemented. What impact will this US tariff have on India's exports? Let's hear from market experts on this matter.

US President Donald Trump's tariffs have cast a shadow on the relationship between India and the United States of America. Trump initially announced a 25% base tariff on India and later announced an additional 25% tariff for purchasing oil from Russia. However, many experts believe that Trump imposed these tariffs on India because Prime Minister Narendra Modi did not credit Trump for the ceasefire between India and Pakistan. The 25% base tariff on India was already in effect and has now doubled.

50% Tariff Comes into Effect

A 50% US tariff on India came into effect today, Wednesday, 27 August. The doubled tariff on India was implemented at midnight in the US.

Impact on Exports?

Trump's 50% tariff on India is certain to impact India's exports to the US. Speaking on this, market expert Ajay Bagga said, “Last year, India exported a total of $86.7 billion to the US. Of this, approximately $55-60 billion worth of exports fall under this 50% tariff. Due to the tariff, there will be a decrease of approximately $25-30 billion in India's exports to the US.”

India Will Not Bow to Trump's Tariffs

India's stance on Trump's tariffs has been clear from the beginning: it will not yield. PM Modi has also made it clear that even if India has to pay the price, he will not allow harm to come to the country's farmers, fishermen, and dairy farmers. According to German media, Trump called PM Modi four times in the past few weeks. Despite this, PM Modi did not answer the US President's calls. By doing so, PM Modi made it clear that India will not succumb to pressure from the tariffs.