Impact on Indian economy: The new order doubles the total tariff burden on Indian exports to 50%, excluding the pre-existing levies, making it the highest US tariff rate imposed on any country globally. It takes effect on August 27. New Delhi reacted sharply, calling the move “unfair, unjustified and unreasonable” while industry experts warn that US-bound exports will fall by 40–50% leading to a ripple effect on Indian economy. But economy recovers. Nobody dies!

WASHINGTON/NEW DELHI, Aug 6: In a dramatic escalation of trade tensions, US President Donald Trump signed an executive order on Wednesday imposing an additional 25% penalty tariff on Indian goods, citing India’s continued import of Russian crude oil as a violation of US foreign policy interests.

The move doubles the total tariff burden on Indian exports to 50%, making it the highest US tariff rate imposed on any country globally.

The executive order, issued under the International Emergency Economic Powers Act and other statutory authorities, declares that India’s direct or indirect purchase of Russian oil undermines US efforts to isolate Moscow over its actions in Ukraine.

“India has not been a good trading partner… I think I’m going to raise (tariffs) substantially over the next 24 hours because they’re buying Russian oil,” Trump had told CNBC hours before signing the order.

Order details

The new tariffs will take effect 21 days from the signing date—on August 27, 2025—allowing a brief window for negotiations. Goods already in transit before the deadline will be exempt if they arrive before September 17.

The order builds on Executive Order 14066, which previously banned imports of Russian-origin petroleum products into the US. Trump’s latest action expands the scope by targeting countries that continue to engage in energy trade with Russia, citing national security concerns.

India’s response

New Delhi reacted sharply, calling the move “unfair, unjustified and unreasonable.” In a statement, the Indian Government emphasized its “transparent and market-driven approach” to securing energy for its 1.4 billion citizens. “We will take all necessary measures to safeguard our national interests and economic security,” a spokesperson said.

Opposition leaders also weighed in. Congress party leader Rahul Gandhi labeled the tariff “economic blackmail,” accusing Trump of trying to bully India into an unfavorable trade deal. He urged Prime Minister Narendra Modi not to let “weakness override the interests of the Indian people”.

The impact

The tariff hike is expected to disrupt trade flows significantly. Indian exporters, already wary of US tariff volatility, now face the highest duties among major trading partners—surpassing China’s 30% and Pakistan’s 19%. While about half of India’s $80 billion in exports to the US fall under exemptions (including pharmaceuticals and electronics), sectors like textiles, auto parts, and agricultural goods are likely to be hit hard.

Geopolitical undercurrents

The timing of the order coincides with reports that Prime Minister Modi may visit China later this month, marking his first trip there in over seven years. Analysts suggest the tariff move could further strain US-India relations, which are already facing their most serious crisis in years following stalled trade negotiations.

As Washington ramps up pressure on countries maintaining ties with Moscow, India finds itself at the centre of a geopolitical tug-of-war—balancing energy security, strategic autonomy, and its critical trade relationship with the United States

Negotiations and sectoral impact

While the tariff order is set to take effect on August 27, officials in both Washington and New Delhi have signaled that backchannel negotiations are ongoing. Indian trade representatives are reportedly pushing for exemptions or phased implementation, especially for sectors already burdened by existing duties.

For instance, Indian shrimp exports—which contribute nearly 48% of their volume to the US market—already face a 2.49% anti-dumping duty and a 5.77% countervailing duty. With the new 25% and earlier 25% tariff, the total duty burden on shrimp will rise to 58.26%.

Other sectors facing steep cumulative duties include textiles and apparel (up to 63.9%), gems and jewellery (52.1%), and machinery (51.3%).

Industry experts warn that the effective 50% tariff could slash US-bound exports by 40–50%, with MSME-led sectors particularly vulnerable to order cancellations and margin collapse

The sectors, which will be impacted by the duty hike include textiles/ clothing ($10.3 billion), gems and jewellery ($12 billion), shrimp ($2.24 billion), leather and footwear ($1.18 billion), chemicals ($2.34 billion) and electrical and mechanical machinery ($9 billion), according to Financial Express data.

Indian exporters will not be able to compete with other countries with the additional levy of 25%. Export orders are already being put on hold.

The existing anti-dumping duty and countervailing duty will also continue, it is said.

However, finalisation of India-US bilateral trade agreement is expected to ease the situation.

• The Udhampur-Srinagar-Baramulla line provides Kashmir with all-weather connectivity and integrates the Valley with the rest of India.
• The saying 'Kashmir to Kanyakumari' is now a dream come true.
• The Chenab bridge on the line, an engineering marvel, is the world's highest railway bridge, taller than the Eiffel Tower. (Video: File)

A comment on social media on Kanimozhi's answer on the question of national language read: "Daughter of Kalaignar M. Karunanidhi. Delivered the Birthday Present to her Father!!" (Karunanidhi was born on June 3, 1924) (Today's headlines )

Trump said, "Elon is not really leaving" and will be "back and forth" to the White House because DOGE is his "baby." "I think he’s going to be doing a lot of things.”

Musk wrote: "My scheduled time as a Special Government Employee comes to an end... The @DOGE mission will only strengthen over time as it becomes a way of life throughout the government." Now on it will be on auto-pilot.

PROGNOSIS: DOGE was prematurely born to protect the country by aborting an impending socio-economic disaster which very few people could see coming.

Although its immediate job was to save American taxpayers billions by slashing waste, eliminating fraud, cutting Government bloat and ensuring utmost efficiency in administration for the good of the people. (Today's headlines )

"Coming from a system like in England, empowering," she says she never had an idea of this sort of experience... being asked to “socialise with middle-aged men” who financed the event...humiliating...

Originally from Junagadh, Gujarat, Pataudi was relocated to Etawah Lion Safari in September 2019 before being transferred to Gorakhpur Zoo in 2021. Recently it was receiving treatment for pancreatic and liver infections. After tigress Shakti died in the zoo on May 7 due to bird flu, Pataudi was shifted to Kanpur. Some birds are also reported to have died mysteriously around Gorakhpur. All zoos in UP are closed for fear of a bird flu outbreak.

Three other animals too had died - a tiger, a leopardess and a female wolf. Wolf Bhairavi died last Saturday, leopardess Mona died the Thursday before that and tiger Kesari died on March 30. Some of them had Shakti's symptoms but the cause of death has not been confirmed yet.

As tourist inflow is an indicator of normalcy returning to an erstwhile terrorist infested Valley, the Government has been trying hard to make everything travel-friendly, launching lot many projects and bringing Kashmir on the national rail map that physically completes the process of Kashmir's integration with the rest of India. And that defeats the designs of Pakistan eyeing Kashmir and simply explains a recrudescence of terrorism in J&K.

The committee headed by justice Kurian Joseph will study Centre-State relations and make proposals to ensure foolproof separation of powers.

"It's a big victory not just for Tamil Nadu but for all Indian States. DMK will continue to struggle for and win State autonomy and Federal polity," Chief Minister MK Stalin said.

Of 2.08 km in length, it features 99 spans and a 72.5-metre vertical lift span that rises up to a height of 17 metres, facilitating smooth movement of ships while ensuring seamless train services to the holy town of Rameswaram on Pamban island.

ANALYSIS: There is a lot of hue and cry around the world over Trump's tariffs. But tariff, simply put, is a tax. But unlike tax, it affects the exporting country too. Domestic prices will go up for some time. Nothing more will happen, good or bad!

What motivated Trump's newfound policy, apart from being a stunt to justify his existence in the White House, is a false realisation that increased tariff will make foreign goods prohibitive, thereby boosting local production, and create more jobs, and more prosperity will ring in! If that is true, India would have been shining by now: Producing own Rolls-Royce La Rose Noire Droptail and Scotch Whiskies! And what about coconut and palm oil by America! (Today's headlines )

PROGNOSIS: It looks a Real New Trump is emerging - courageous, balanced, powerful and disinterested. Determined to save his country from the cliff, he has done quite a few draconian things that will reduce the burden of debts of the Federal entity, like the golden handshake, stopping senseless funding, pulling out of a worthless WHO. Shutting the Education Department is another. On the other hand, running it is also not the Centre's job either (We will convincingly elaborate it in the next chapter).

In India the scene is just the opposite. Centralisation is the core agenda and identity of the ruling dispensation without which it has no existence, or in other words, it exists for that set of schemes only. A realisation of this never dawned upon any Opposition party in 2014 or any time thereafter, what to talk of being able to see it coming 70 years ago! The consequence of all this violation of basic natural law of the universe we cannot predict.

THE AMERICAN CONUNDRUM: Political venom has migrated to top echelons in the US. It was reported last year NASA has become politicised, vitiated. But NASA refuted the charge. How Boeing developed a glitch but its unmanned return was smooth. When Suni-Wilmore were stranded last June, why the return was set for February? Because that comes only after January 20! SpaceX called the shots, for itself and for Trump. Then the mission was manipulated for March for a better bargain! In between, what made Elon Musk 'predict' during campaign if Kamala Harris wins he would be in jail. In politics, it is said, "the only rule is there are no rules." Difficult times for Americans too.

The terminations are part of a large-scale exercise going on all across Fed departments and organisations to reduce wasteful Government expenditure as decided by a Trump in a mess gone berserk, and improve administrative efficiency following the whims of billionaire and his associate Elon MusK and his DOGE. It has not been shared how terminations are going to raise the efficiency bar! It looks like Trump has stolen some of the prescriptions meant for India. But the American problems are quite different.

Suddenly these colonial clerks feel this effortless, little rule will tremendously enhance security and convenience for the railway passengers manifold. More stations will be covered in the next 77 years! (Also See: New Delhi station stampede... What went wrong?)

ANALYSIS: "The standard operating procedure for deportations by aircraft used by ICE that is effective from 2012 provides for the use of restraints," says the Government. That means, it is taken for granted the US will set the standard for deportations. For another, the Government is more interested in comparing with what happened in 2012 under a different Government to justify its own compliance! No surprise, others are trampling upon us. (How we conduct ourselves inside decides, inherently, how we are treated outside) Thirdly, the Government blamed the gangs doing the business of human trafficking for the illegal migration. For all the crimes taking place in the country, let us blame the criminals! Funny! We will never move an inch forward! The mindset defines what we are.

Meanwhile, a UN-returned Congress leader Shashi Tharoor sounded like a layman when he said, "If they are citizens of India we have an obligation to take them back." Who said 'No'?. He should know that is not the issue now. Who will identify an undocumented person, and how?

The function was held indoors from 12 pm (10:30 pm IST) at the rotunda of the US Capitol building because of unusually intense cold and snow. Delivering his inaugural address, Trump remarked, “The golden age of America begins right now," and just hours later signed a slew of executive orders to redeem the election pledges.

The issue: Trump says he is open to 'economic force' to acquire Canada as its '51st State' if it does not stop the flow of illegal migrants and drugs into the US and secure its border.

Trudeau gets ready for the battle: Trudeau under Trump's onslaught had appeared quiet as a lamb because he was facing serious internal problems and now the situation has changed. He has resigned and has enough space for a single-minded counter-attack as acting PM. And that is what he is doing to Canada's advantage. He will prapare Canada to take the 'bull' by the horns (literally) when he takes office on January 20.

There is more to it: On the same page now, Conservative Opposition leader Pierre Poilievre has also outlined his plan to deal with the US President-elect's threats. Both will stand united against the common enemy, and take on him adequately when he assumes office.

And the latest: The counter-attack begins. In a CNN interview, Trudeau strategically addresses the Americans, tells them a ghostly 25% tariff will create a recession in Canada but will be equally devastating for the US economy. And he has a point.

• A President-elect at the instance of 'sensible' aides has declared, “A smaller Government, with more efficiency and less bureaucracy, will be the perfect gift to America.” A Trump statement said he will chop off the bureaucratic flab, or in his own words, “drain the swamp” in Washington. This contrasts with India where millions and millions of clerks rule the roost with the blessings of petty vote bank politicians, who badly needed them, all these 77 years.
• The South African migrant who will benefit more than Trump himself from the election victory has climbed to the helm - Elon Musk will be the monarch of all he surveys in Washington!
• Musk will lead a 'Department of Government Efficiency' with Vivek Ramaswamy, the eccentric dreamer.
• They will slash bureaucracy and Government spending and restructure Federal agencies. (But no mention of what next and how!)
• The irony lies here: Musk will also be the boss of all Federal agencies, including those currently investigating business frauds in his own companies like Tesla, SpaceX and Starlink, which receive Government funding, inter alia making him the richest man on earth.