Header

Does India have 20 days to avoid Trump's 50% tariff? And how?

Hello, We are All Vision India, Hope you are well

India has 21 days (not 20) from the signing of President Donald Trump’s executive order to avoid the imposition of a 50% tariff on most Indian exports to the United States. The tariff consists of a new 25% duty added to an existing 25%, and is set to take effect on or around August 27, 2025, unless a deal is reached or the US changes its stance during this period.[1][2][3][4][5][6][7]

Why is This Happening?

·         The Trump administration is imposing the higher tariff due to India’s continued purchase of Russian oil.[8][3][1]

·         The US government claims India’s trade with Russia poses a “threat to national security and foreign policy”.[3]

·         Only certain export categories — like electronics and pharmaceuticals — are currently exempt from the additional tariff.[9][1]

How Can India Avoid the 50% Tariff?

India’s options over this 21-day negotiation window include:

·         Negotiating with the US: Ongoing high-level diplomatic talks could result in India reducing or phasing down Russian oil imports, or making limited trade concessions to the US, like opening up segments of its farm and dairy markets or allowing some US agricultural imports, to address US concerns. A US trade team is expected to visit India this month for further talks.[10][11][1]

·         Cutting or Pledging to Reduce Russian Oil Purchases: If India provides credible commitments to scale back oil imports from Russia and shift to other energy sources, it may persuade the US to reconsider or delay the full tariff hike.[11]

·         Banding Together with Other Affected Countries: India may work with other BRICS members, including Brazil (also facing similar tariffs), to present a united front or negotiate jointly with Washington.[11]

·         Legal or Trade Retaliation (Less Likely Immediately): India could file a complaint at the World Trade Organization (WTO) if the tariffs violate WTO rules, and/or impose reciprocal tariffs on selected US goods — but most reports indicate India is currently prioritizing negotiation rather than immediate retaliation.[12][13][11]

What If No Deal Is Reached?

·         If India fails to strike an agreement or offer concessions within the 21-day window, the 50% tariff will take effect and hit about $40–$87 billion in exports, especially in sectors like textiles, jewelry, auto parts, and leather.[14][1][9]

·         The impact, according to economists, could potentially reduce India’s GDP growth by up to 1% if the tariffs persist.[15][14]

Summary Table: Timeline and India's Actions

Event/Deadline

Date

What India Can Do

Order Signed

Aug 6, 2025

Diplomatic negotiations begin

Tariff Takes Effect

~Aug 27, 2025

Offer trade concessions; reduce Russian oil

If No Deal

Aug 27, 2025+

Consider WTO complaint, wider trade response

 

In sum, India has a 21-day window from August 6, 2025 to negotiate, make policy changes, or otherwise persuade the US to halt the tariffs. The most viable avenues are diplomatic engagement and reevaluating its Russian oil imports, although market diversification and industrial policy will be essential for long-term resilience.[13][5][1][10][15][11]

1.       https://www.ndtv.com/world-news/donald-trump-tariffs-live-updates-trump-imposes-additional-25-tariff-on-india-total-goes-up-to-50-9033061     

2.      https://www.bbc.com/news/articles/cx23jmvn5yzo

3.      https://www.aljazeera.com/news/2025/8/6/trump-imposes-25-percent-tariff-on-indian-goods-over-russian-oil  

4.      https://www.hindustantimes.com/india-news/donald-trump-reciprocal-tariffs-take-effect-deadline-india-additional-sanctions-101754539461811.html

5.       https://www.bbc.com/news/articles/c1w83j35jjjo 

6.      https://www.cnn.com/business/live-news/us-tariffs-take-effect-08-07-25

7.       https://www.cnbc.com/2025/08/07/india-isnt-flinching-why-trump-might-be-misreading-indias-tariff-playbook.html

8.      https://www.bloomberg.com/news/articles/2025-08-06/trump-hits-india-with-additional-25-tariff-over-russia-oil-buys

9.      https://economictimes.com/news/economy/foreign-trade/who-will-be-hit-hardest-by-trumps-50-tariff-on-india-a-sector-wise-breakdown/articleshow/123162453.cms 

10.   https://www.bloomberg.com/news/articles/2025-08-07/india-weighs-trade-options-as-trump-s-50-tariff-strains-ties 

11.    https://www.ndtv.com/india-news/as-trump-doubles-tariff-to-50-what-are-indias-options-and-risks-9037556    

12.   https://www.youtube.com/watch?v=XgSJppRAMD8

13.   https://economictimes.com/small-biz/trade/exports/insights/50-tariffs-heres-how-india-can-flip-the-script-on-trumps-trade-offensive/articleshow/123155653.cms 

14.   https://economictimes.com/news/economy/policy/india-risks-1-gdp-hit-as-trump-slaps-50-tariffs-over-russian-oil/articleshow/123161849.cms 

15.    https://www.ndtv.com/opinion/trumps-50-tariffs-on-india-will-most-affect-these-sectors-9037619 


إرسال تعليق

0 تعليقات