New Delhi: India is facing a major trade blow as the United States moves to enforce steep tariffs that will double duties on Indian exports. Starting August 27, 2025, Washington will impose an additional 25% duty on Indian goods, taking the overall tariff burden to 50%.

The new measures, introduced by the Trump administration, are expected to hit nearly 55% of India’s exports to the US, which stand at around $87 billion annually. Economists warn this could cause shipments to drop by as much as 30%, and shave nearly one percentage point off GDP growth in the coming year.

The US has justified the tariffs as a response to India’s continued imports of Russian crude oil, but Indian officials argue that the country is prioritising energy security and economic stability.

Reacting to the looming crisis, Prime Minister Narendra Modi struck a defiant tone, urging citizens to embrace the Swadeshi spirit by buying and producing more “Made in India” goods. Addressing a gathering in Ahmedabad, he assured farmers, small industries, and traders that the government would provide financial and policy support to cushion the impact of the tariffs.

“India will not bow down under pressure. We will turn this challenge into an opportunity to strengthen our economy from within,” Modi said.

The government is also working on diversifying export markets in Asia, Africa, and Latin America to reduce dependence on the US. However, businesses fear immediate disruptions, particularly in textiles, pharmaceuticals, and auto components—sectors heavily reliant on the American market.

As the deadline approaches, India finds itself navigating one of the toughest trade standoffs in recent years, balancing domestic resilience with the need to protect its global economic interests.