{"id":355340,"date":"2025-07-31T00:09:00","date_gmt":"2025-07-31T05:39:00","guid":{"rendered":"https:\/\/tehelka.com\/?p=355340"},"modified":"2025-07-31T00:10:20","modified_gmt":"2025-07-31T05:40:20","slug":"trump-hits-india-with-25-tariffs-equity-markets-in-red-rupee-tumbles","status":"publish","type":"post","link":"https:\/\/tehelka.com\/trump-hits-india-with-25-tariffs-equity-markets-in-red-rupee-tumbles\/","title":{"rendered":"Trump hits India with 25% tariffs\u2014Equity markets in red, Rupee tumbles"},"content":{"rendered":"\n

Congress hit out at the Narendra Modi government, calling it a personal failure of the Prime Minister<\/em><\/p>\n\n\n\n

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File Photo<\/figcaption><\/figure>\n\n\n\n

Effective August 1, US President Donald Trump has announced a sweeping 25% tariff on all goods imported from India\u2014a move that will affect nearly all Indian exports to America. In addition, he also mentioned an unspecified penalty linked to India\u2019s ongoing trade with Russia, particularly in oil and arms.<\/p>\n\n\n\n

In a post on Truth Social, he talked of the penalty for procuring crude and defense equipment from Russia. India is also a part of BRICS which is a threat to the Dollar, he said.  However, negotiations would continue with India, he added. <\/p>\n\n\n\n

Intended to put pressure on India to strike a deal or face hefty tariffs, the announcement is expected to put a strain on economic and diplomatic ties between the countries.<\/p>\n\n\n\n

Meanwhile, US Fed kept the rates on hold<\/p>\n\n\n\n

According to IFA Global, the Rupee weakened 61p to end at 87.43 after trading in a 87.06-87.52 range yesterday. After the move Rupee became the \u201cworst performing Asian currency Calendar YTD. Rupee is likely to open around 87.62 and trade a 87.45-87.90 range with weakening bias,\u201d it said <\/p>\n\n\n\n

Equity markets opened lower with tariff concerns weighing on investors\u2019 sentiments<\/p>\n\n\n\n

The duties target several of India\u2019s top-performing export sectors. Automobiles, auto components, steel, aluminum, smartphones, solar modules, marine products, gems, jewellery, and select processed food and agricultural items are all on the 25% list, however, pharmaceuticals, semiconductors, and critical minerals have been excluded.<\/p>\n\n\n\n

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Opposition slams PM Modi<\/strong><\/p>\n\n\n\n

The Congress hit out at the Narendra Modi government, calling it a personal failure of the Prime Minister.<\/p>\n\n\n\n

\u201cAll that \u2018taarif\u2019 between him and \u2018Howdy Modi\u2019 has meant little,\u201d Congress general secretary Jairam Ramesh said in a post on X.<\/p>\n\n\n\n

\u201cMr Modi thought that if he kept quiet on the insults that the US President has hurled on India\u201430 claims of stopping Op Sindoor, the special lunch for the Pakistan Army Chief whose inflammatory remarks provided the immediate backdrop to the brutal Pahalgam terror attacks, and US support for financial packages to Pakistan from the IMF and the World Bank\u2014India would get special treatment at the hands of President Trump. Clearly that has NOT happened,\u201d he said.<\/p>\n\n\n\n

  \u201cThe 25 per cent tariff on all Indian exports to the United States PLUS penalty for buying Russian oil is a big blow to India\u2019s trade with the U.S. \u2018Dosti\u2019 is no substitute for diplomacy and painstaking negotiations,\u201d Former Finance Minister P Chidambaram said in a post on X.<\/p>\n\n\n\n

 Responding to US President Donald Trump, the Narendra Modi government on Wednesday said it will take all \u201csteps necessary\u201d to secure the country\u2019s national interests as it has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK. In a short and clear statement issued late evening, the Ministry of Commerce said that the \u201cGovernment has taken note of a statement by the US President on bilateral trade.  The Government is studying its implications.\u201d<\/p>\n\n\n\n

\u201cIndia and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective.<\/p>\n\n\n\n

\u201cThe Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs.<\/p>\n\n\n\n

\u201cThe Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK,\u201d it said<\/p>\n\n\n\n

August 1<\/strong><\/p>\n\n\n\n

August 1 was the deadline for implementation of reciprocal tariffs on various trading partners, including India. The deal remains unfinalised despite several rounds of discussions and any further delays could negatively impact the Indian economy and stock market but sources in know of developments say that for a government which is facing backlash on Trump\u2019s repeated claims on brokering ceasefire between India and Pakistan, it needs to be extra caution while finalising the deal in mind the interests of people, especially the farmers   <\/p>\n\n\n\n

Recently India and the United\u202fKingdom made history by officially signing the Comprehensive Economic and Trade Agreement (CETA) which is projected to elevate bilateral trade by $34\u202fbillion annually. At a time when the India-US trade agreement was facing uncertainties, CETA was described as India\u2019s most ambitious pact with a Western country.<\/p>\n\n\n\n

Though Indian equity benchmark indices\u2014Sensex and Nifty\u2014traded higher on Wednesday, there continues to be a lingering uncertainty over the much-delayed agreement. Gold and silver prices also remained bullish in the domestic futures market on the back of persistent uncertainty over the deal, driving investors into safe-haven assets.<\/p>\n\n\n\n

Sticking points<\/strong><\/p>\n\n\n\n

Agricultural products and genetically modified crops remain some of the main sticking points from the India side. A key point of contention is America\u2019s insistence on greater access to Indian markets for its agricultural, dairy, and GM products, India argues that such access could negatively impact the livelihoods of its farmers.<\/p>\n","protected":false},"excerpt":{"rendered":"

Congress hit out at the Narendra Modi government, calling it a personal failure of the Prime Minister Effective August 1, US President Donald Trump has announced a sweeping 25% tariff on all goods imported from India\u2014a move that will affect nearly all Indian exports to America. In addition, he also mentioned an unspecified penalty linked […]<\/p>\n","protected":false},"author":187,"featured_media":355349,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[15084,36],"tags":[16003,18841,18477,15700,19875,19726],"_links":{"self":[{"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/posts\/355340"}],"collection":[{"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/users\/187"}],"replies":[{"embeddable":true,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/comments?post=355340"}],"version-history":[{"count":4,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/posts\/355340\/revisions"}],"predecessor-version":[{"id":355351,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/posts\/355340\/revisions\/355351"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/media\/355349"}],"wp:attachment":[{"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/media?parent=355340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/categories?post=355340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/tags?post=355340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}