Trump Raised Tariffs to 50 Percent on Indian Goods, and China Backs India’s Right to Choose

US President Donald Trump on Wednesday, 06 August 2025, imposed additional taxes on India. The tariff is increased by 25% which means, now India will have to pay a 50% tax on the imported goods. This step is taken to stop the trade between India and Russia, especially oil and weapons. The new tariffs will be implemented after 21 days, though the already shipped goods will be exempted from the tax.

What Products Are Affected?

Nearly all Indian goods exported to the US will now face higher taxes. Key products like clothing, jewelry, seafood (especially shrimp), leather items, chemicals, steel, and furniture will see a 50 percent or more tax.
Some items will have lower taxes, like cars at 26 percent and oil at 6.9 percent.

The US is India’s largest export destination. In the last year, India exported around $87 billion worth of goods to the US. Now, over 55 percent of those goods will be taxed heavily. The higher taxes will make Indian goods costlier in the US. American buyers may turn to cheaper products from Vietnam or Bangladesh. This could hurt Indian businesses. Sectors like textiles, jewelry, and seafood may see big losses. Many jobs could be at risk. The Indian rupee has already dropped. Export company stocks are also falling.

India’s Response to Trump’s New Tariffs

Prime Minister Narendra Modi responded firmly. He said India will not compromise on its national interest and will bear the cost of standing strong.

Government officials called the US action unfair. They said India must meet the needs of its large population, especially when it comes to affordable energy.
So far, India has not announced any counter-tariffs or trade restrictions, but it says steps will be taken to support Indian businesses.

Experts See Opportunity

Some Indian experts believe the situation could lead to positive change. Amitabh Kant, a senior economic advisor, said the crisis might push India to reform its trade and strengthen its economy. It could be a chance to reduce reliance on any single country.

China Backs India: “India’s Sovereignty is Non-Negotiable”

In a rare show of support, China has publicly defended India’s right to trade independently. Chinese officials said India’s sovereignty is non-negotiable and that no country should pressure India into changing its foreign policy.

China also criticized the US and Europe for using trade threats to control India’s decisions. They called for both India and China, Asia’s two biggest developing countries, to stand together.

President Xi Jinping of China has shown interest in stronger trade relations with India. He even used the phrase “Dragon-Elephant Tango” to describe his hope for a closer partnership between the two countries in global trade and diplomacy.

Reason Behind the Increased Tariffs

The US and India have had trade disputes for years. The US wants more access to Indian markets, especially in agriculture and tech. India has resisted.

The Ukraine war added more tension. The US wants India to stop buying oil from Russia, but India says it needs affordable oil for its population.

Verdict

This looks more than just a trade issue. It shows a shift in global power. The US wants control. But India is standing its ground. China is also stepping in with support. This could lead to new regional partnerships. India might now rethink who it depends on. It may try to build more balanced global ties. How India handles this agitated situation could shape its future.

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