Delhi (TDI): India’s External Affairs Minister, S. Jaishankar, confirmed that negotiations with the United States remain ongoing, even as Washington prepares to impose another round of tariffs, on August 27 – the last deadline the US gave India.
With a 25 percent duty already in place, an additional 25 percent will take effect on August 27, bringing total tariffs on Indian goods to 50 percent. India’s currency markets have already started to feel the impact.
The Indian rupee slipped to ₹87.53 per USD, marking a 0.3 percent daily decline and a marginal weekly loss, an erosion partly attributed to heightened dollar demand and tariff‑related anxieties
Tariffs imposed largely in response to India’s oil imports from Russian drew a mixed response from India. EAM Jaishankar drew comparisons and blamed Europe for also doing trade with Russia and buying its oil – indirectly supporting the war in Ukraine.
At an earlier point after the onset of tariffs, local markets also heard calls of boycotting US products. By and large, the trade negotiations have barely happened, evident also from a canceled US trade team visit.
Read More: India Must End Russian Oil Purchases: US Adviser
The EAM appeared firm as he stressed that India’s “red lines” remain intact and that New Delhi will act firmly in line with its national interest and sovereignty in trade policymaking.
It remains to be seen how the markets will adapt to 50 percent tariffs if no headway is made in talks till August 27.
Experts estimate a potential drag on India’s GDP growth of about 0.8 percentage points in both 2025 and 2026, while also warning that the country’s positioning as a global manufacturing hub could suffer.
While most countries have concluded trade deals with the US in re-negotiations, some remain stringent, including India and China. China, however, has kept the trade talks on track with both sides extending the tariff deadline twice. With India, trade talks have not yet picked up pace.
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