Wed, 27 Aug 2025

Wed, 27 Aug 2025 Trump's 50% tariff on India kicks in as Modi urges self-reliance

The US president's steep 50% tariffs on India have kicked in, sending Narendra Modi's government into firefighting mode.

* US imposed 50% tariffs on Indian goods, citing India's purchase of Russian oil and weapons.
* India calls the tariffs "unfair" but vows to choose the best deal for its people.
* The tariffs could disrupt millions of livelihoods in India's export-driven industries.
* Prime Minister Narendra Modi has promised a tax bonanza to mitigate the impact of the tariffs, including a reduction in indirect taxes (GST).
* Experts say the GST overhaul and income tax cuts will help soften the blow and boost consumption.
* The tax breaks are expected to benefit consumer-facing sectors such as scooters, small cars, garments, and cement.
* Analysts estimate that the revenue loss from lower GST would be offset by surplus collections of other taxes.
* India's stock markets have cheered the announcements, and the country got a rare sovereign rating upgrade from S&P Global.
* However, trade tensions between India and the US remain high, and experts warn that the tariffs could harm India's economy.
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