Trump Tariff Live Updates: Indian goods exempt from 50% tariffs if they follow these 3 conditions – India News

Americans’ view of the US economy declined modestly in August as anxiety over a weakening job market grew for the eighth straight month. The Conference Board said Tuesday that its consumer confidence index ticked down by 1.3 points to 97.4 in August, down from July’s 98.7, but in the same narrow range of the past three months. The small decline in confidence was in line with the forecasts of most of the economists who were surveyed.

Low-value imports are losing their duty-free status in the United States this week as part of President Donald Trump’s agenda for making the nation less dependent on foreign goods and resetting global trade with tariffs. An executive order signed last month eliminates a widely used customs exemption for international shipments worth $800 or less starting Friday. The national postal services of more than a dozen countries including India have said they will temporarily suspend sending some or most US-bound packages due to confusion over processing and payment requirements.

US President Donald Trump insisted on Tuesday that other countries — both ‘friend and foes’ — had been “robbing America blind” for decades until he took. He also touted the recently imposed tariffs and other policies during a Cabinet meeting — insisting that “trillions of dollars was flowing into the country”.

US President Donald Trump reiterated plans to impose ‘pretty substantial’ furniture tariffs in the near future during a Cabinet meeting on Tuesday. India is unlikely to be majorly impacted by this.

Exporters from Tiruppur in Tamil Nadu is facing the possibility of large scale job cuts, factory shutdowns and losses amounting to several thousand crores. The industrial town accounts for nearly 68% all knitwear exports from India and employs around a million people. Reports suggest that they could be looking at up to 1.5 lakh job losses and Rs 12000 crore revenue hit.

“We revisit our recession ‘tipping points’ model following recent payroll revisions. Various specifications suggest that the US is likely in a stall state, and perhaps for a year or more. With this heightened susceptibility, the model places odds of a recession within eight quarters at about 50%.” the firm wrote on Tuesday.

Prime Minister Narendra Modi has rejected multiple calls from US President Donald Trump amid an escalating rift between the two countries. According to German newspaper Frankfurter Allgemeine the Indian leader had rebuffed his advances at least four times in recent weeks.

Read more: Modi rejects Trump calls, report says US President dialed at least four times

Oil prices fell by about 1% on Tuesday after surging nearly 2% in the previous session as investors reassessed developments surrounding the war in Ukraine and potential disruption to Russian fuel supplies.

Brent crude was down 94 cents, or 1.4%, at $67.86 a barrel by 1332 GMT, having hit its highest since early August in the previous session. West Texas Intermediate (WTI) crude lost $1.02, or about 1.6%, to $63.78.

“The modest setback today is due to risk aversion, with equity markets trading lower. Geopolitical factors are something to watch for, particularly what Trump might do if there is no meeting between Russia and Ukraine,” UBS analyst Giovanni Staunovo told Reuters.

The rally on Monday was primarily driven by supply risks after Ukraine strikes on Russian energy infrastructure and the possibility of further US sanctions on Russian oil.

According to the Commerce Ministry, around $48.2 billion of India’s merchandise exports (based on 2024 trade value) to the US will be subject to additional tariffs.

The US draft order stated that Indian products will be exempt from the new 50 per cent tariff if they were already loaded on a ship and in transit to the US before 12:01 am (EDT) on August 27, 2025, provided they are cleared for use in the country or taken out of a warehouse for consumption before 12:01 am (EDT) on September 17, 2025, and the importer certifies this to US Customs by declaring a special code.

Investors’ wealth eroded Rs 5.41 lakh crore on Tuesday as markets fell sharply, with the benchmark Sensex tumbling 849 points to close below the 81,000 level on Tuesday due to widespread selling pressure after the US issued a draft notice on the implementation of an additional 25 per cent tariff on Indian products.

The 30-share BSE Sensex tumbled 849.37 points, or 1.04 per cent, to close at 80,786.54 with 25 of its constituents ending lower and five with gains. During the day, the index nosedived 949.93 points, or 1.16 per cent, to hit a low of 80,685.98.

Persistent foreign fund outflows and losses in global equities following US President Donald Trump’s firing of a Fed governor also dampened investor sentiment

According to an Indian Express report, the textiles and apparel manufacturers in Tirupur, Noida, and Surat have halted production amid worsening cost competitiveness due to the additional tariffs.

“This sector is losing ground to lower-cost rivals from Vietnam and Bangladesh. As for seafood, especially shrimps, since the US market absorbs nearly 40 per cent of Indian seafood exports, the tariff increase risks stockpile losses, disrupted supply chains, and farmer distress,” Federation of Indian Export Organisations President S C Ralhan said in a statement.

“The Quad is indeed an important platform for working on and promoting peace, stability, prosperity and development in the Indo-Pacific region,” said foreign secretary Vikram Misri.

He added said India was still in talks with the U.S. over the tariffs and keen to continue expanding its cooperation with the Quad countries.

The Indian stock market witnessed a sharp sell-off on Tuesday after the Trump administration issued a notification to impose an additional 25% tariff on Indian imports. The secondary tariffs will come into effect from August 27 and take the total tariff on Indian goods to 50%. Stock markets traded under pressure today and slipped below crucial support levels, derailing the recent recovery momentum.

“The government has no hope for any immediate relief or delay in U.S. tariffs,” said a commerce ministry official told Reuters.

The official added that exporters hit by tariffs would receive financial assistance and be encouraged to diversify to alternative markets such as China, Latin America and the Middle East.

The total tariff on Indian goods entering the US market (with certain exceptions) will become 50% from Wednesday. The US had imposed a 25% on August 7. President Donald Trump had also announced an additional 25% tariffs as a penalty for buying Russian crude oil and military equipment — set for implementation after 21 days.

The US Department of Homeland Security, in the draft order published on Monday, said the increased levies would hit Indian products that are “entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time on August 27”.

The Indian rupee continued its losing streak for a fifth consecutive session on Tuesday as Washington confirmed it will impose an extra 25% levy on Indian goods, clouding the outlook for Asia’s third-largest economy.

The fall in the rupee was curbed after dollar sales from banks, likely on behalf of the Reserve Bank of India, traders said.

U.S. Department of Homeland Security on Monday outlined the procedure to implement additional tariff on Indian goods starting Wednesday.

The tariffs risk slowing growth in India as exporters face U.S. duties of up to 50% – among the highest imposed by Washington.

Exporter groups estimate that the hikes could affect nearly 55% of India’s $87 billion in merchandise exports to the U.S., while benefiting competitors such as Vietnam, Bangladesh and China.

(via Reuters)

The Principal Commercial Officer at the US Embassy in India reaffirmed the United States’ commitment to work with India in many sectors — specifically in the energy security partnership. Xiaobing Feng highlighted the growing cooperation between New Delhi and Washington DC in the energy sector during the Indo-American Chamber of Commerce (IACC) 3rd Energy Summit.

He also recalled that US President Donald Trump and Prime Minister Narendra Modi, in February 2025, had reaffirmed the shared role of both nations as “leading producers and consumers in shaping local energy markets,” and reiterated their commitment to a long-term bilateral energy security partnership covering oil, gas and civil nuclear energy.”

The notice issued by the Trump administration on Monday said that from 12:01 AM EDT on August 27 (9:30 am IST on Wednesday) Indian goods brought into the US for use, or taken out of warehouses for sale, will face higher tariffs.

Responding to the high tariffs imposed by the United States, Georg Enzweiler, Deputy Head of Mission at the German Embassy in India, said on Tuesday that Germany supports keeping tariffs as low as possible because they block free trade, reported ANI. “Tariffs are obstacles to free trade. We would always be in favour of reducing tariffs to the minimum level,” Enzweiler said. He also spoke about India and Germany’s trade ties, saying that both countries share common interests in today’s uncertain global situation and can work together to bring stability to the world order.

Ahead of US’ steep tariff hike, External Affairs Minister S Jaishankar has said that India is in touch with the US on the matter, a report by CNBC said. He further added that Prime Minister Narendra Modi is expected to hold bilateral talks during his China visit. Jaishankar also revealed that India has specific interest in some of Japan’s defence platforms.

CNBC reports that India’s diamond exports have already fallen to a 20-year low because of weak demand from China. Now, higher US tariffs under Trump are threatening India’s access to its biggest market, which buys nearly one-third of the country’s $28.5 billion annual gem and jewellery exports. In Surat, where over 80% of the world’s rough diamonds are cut and polished, orders are slowing down as US tariffs make buyers uncertain.

Smaller exporters have fewer ways to cope with the loss, but some larger companies are planning to shift part of their work to countries like Botswana, which faces only a 15% US tariff, the report added.

Prime Minister Narendra Modi, while addressing the crowd in Ahmedabad on Monday, without taking any names, said that the pressure on India is going to increase but “we will keep increasing our strength to withstand it”. The PM’s statements came ahead of Trump’s additional 25% tariffs on Indian goods that are going to be imposed from tomorrow.

The RBI is said to be selling dollars through state-run banks to stop the rupee from falling further, a Reuters report said. The Indian rupee is currently under pressure because of the concerns over steep US tariffs that are going to come into effect tomorrow. Traders believe the RBI is trying to prevent the rupee from weakening beyond 87.80, but they are unsure how long the central bank will continue such support, the report added.

A report by CRISIL states that India’s readymade garmet industry will see its revenue growth drop by almost half this Financial Year. This is of course due to the 50% tariffs that will be imposed on the RMG imports from India from August 27. Along with the falling profits, this will also weaken the financial health of many companies. However, the impact will differ from company to company, especially for those that earn more then 40% of their revenue form the US.

CRISIL, in its report, said that it studied over 120 garment makers, with combined revenues of about Rs 45,000 crore, and found similar results.

Last year, RMG exports from India were worth about $16 billion, which made up 27% of the industry’s total revenue. About one-third of these exports went to the US. The new 50% tariff will put India at a clear disadvantage compared to rivals like China, Bangladesh, and Vietnam.