Get the latest on Trump tariffs! According to a new report from the Finance Ministry, the secondary and tertiary impacts of U.S. tariffs on the economy are creating some tough challenges.

Describing the relationship between India and the United States as “very complicated,” U.S. Treasury Secretary Scott Bessent expressed hope on Wednesday (August 27, 2025) that the two countries would eventually find common ground. “This is a very complicated relationship,” Bessent said in an interview with Fox Business. “President Trump and Prime Minister Modi share a strong personal rapport. But the issue goes beyond just Russian oil,” he added. He emphasized the significance of the relationship, noting that India is the world’s largest democracy and the U.S. is the largest economy. “I think at the end of the day, we’ll come together,” he said optimistically. His remarks came on the same day that a new 25% tariff imposed by President Donald Trump on Indian imports took effect, bringing the total tariff burden on Indian goods to 50%. The move was a response to India continuing to purchase oil from Russia — directly or indirectly — despite U.S. objections. Meanwhile, in India, the government is doubling down on its ‘Swadeshi’ push to reduce dependence on foreign goods. Prime Minister Modi on Tuesday (August 26) urged citizens to support local businesses by being “vocal for local” and prioritizing Indian-made products. The opposition has been quick to criticize the government’s handling of foreign policy. Congress president Mallikarjun Kharge blamed the new tariffs on what he called the Modi government's “superficial” diplomacy, warning that it could lead to significant job losses in export-driven sectors. Congress communications chief Jairam Ramesh also weighed in, calling the new measures the “Trump double tariff.” He warned that the higher duties would hit India’s labour-intensive exports the hardest — particularly in sectors like textiles, gems and jewellery, leather, marine products, and engineering goods. President Trump had first approved a 25% tariff on Indian imports on July 31, followed by a second round announced via executive order on August 6 — both aimed at pressuring India over its energy ties with Russia.

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