Listeners, here’s your October 12th, 2025 edition of the India Tariff News and Tracker, focusing on the latest in US-India trade relations and tariffs under President Trump.

As of today, tariffs between the United States and India have reached historically high levels. The Trump administration doubled the tariff rate on Indian goods to a steep 50 percent this August, after initially imposing a 25 percent tariff earlier in the summer. This move was directly linked to India’s continued purchase of Russian oil, a point of contention for Washington. These rates cover a wide array of exports—everything from textiles and pharmaceuticals to machinery and auto parts—with experts warning that the increased costs are already pushing up prices for American consumers who have long depended on affordable Indian generics and industrial components, as reported by Moneycontrol and New India Abroad. Indian officials are calling the US decision an “own goal” that disrupts both economies and complicates efforts to maintain strong bilateral ties.

This week, the global tariff landscape shifted yet again. President Trump announced a massive 100 percent tariff, set to take effect November 1st, on nearly all Chinese imports, unless Beijing repeals its export restrictions on rare earth minerals—a crucial resource for electronics and defense. While this dramatic escalation is targeted at China, analysts from Agnibaan and Outlook Business emphasize the likely spillover benefits for India. As Chinese exports become more expensive for US buyers, American firms are turning to Indian suppliers as an alternative. Industry leaders like S.C. Ralhan, President of the Federation of Indian Export Organizations, suggest this will offer Indian exporters a significant foothold in the US market, particularly for textiles, electronics, toys, and other consumer goods.

Current trade data shows the US remains India’s largest trading partner for the fourth consecutive year, with bilateral trade reaching nearly $132 billion in the 2024–25 financial year. Indian exports to the US alone topped $86.5 billion. But the new tariffs threaten the affordability of Indian goods and may require exporters to ramp up quality and supply capabilities to maintain their competitive edge.

Despite sharp criticism from US lawmakers—many warning that harsh tariffs could push India closer to China and Russia—the White House has shown no sign of a policy reversal. In response, India is adapting by strengthening domestic economic buffers and exploring new trade routes, aiming to counteract risks posed by the tariffs while preserving export growth.

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