India tariff news highlights: Indian stock market goes from top to least preferred in Asia for fund managers

Indian shares rose on Wednesday, after softer U.S. retail inflation boosted bets of a Federal Reserve rate cut in September, while easing domestic price pressures also supported sentiment.

The Nifty 50 rose 0.31% to 24,563.25 points and the BSE Sensex gained 0.26% to 80,427.58, as of 9:21 a.m. IST. All 16 major sectors logged gains at the open. The broader small-caps and mid-caps gained about 0.5% each.

Amid the tariff tensions, Prime Minister Narendra Modi is likely to address the annual high-level session of the United Nations General Assembly (UNGA) in September, news agency PTI reported. US President Donald Trump is also set to address the session, marking it as his first in his second term. The high-level General Debate at the 80th session of the UN General Assembly is set to take place from September 23 to 29.

US treasury Secretary Scott Bessent has claimed that India had been “a bit recalcitrant” in trade talks with America. Bessent's remarks come days after President Donald Trump threatened additional 25 per cent tariffs on Indian imports, citing the country's oil purchase from Russia.

Brazilian President Luiz Inacio Lula da Silva has announced a $5.5 billion aid package to support companies affected by the 50% tariffs imposed by the United States on many Brazilian exports. The new duties, which came into effect last week, impact key sectors like coffee and meat, covering 36% of Brazil's exports to the US in 2024.

Rajendra Khandelwal, MD and Chairman of Dhanwantary Medicare and Research Centre Pvt Ltd, commented on the impact of Trump’s tariff on India, stating that while India may face temporary losses, the real burden will fall on US citizens, who will now have to pay more for essential medicines.

“All generic products of pharmacy and wellness go from India to the US, and temporarily, if we bear some loss, US citizens will face it two-fold because they will have to buy expensive medicines,” he told ANI.

Union Agriculture Minister Shivraj Singh Chouhan on Tuesday urged farmers not to worry about the 50% tariff imposed by the United States on Indian agricultural exports. Speaking to farmer leaders in Delhi, he called the situation “testing times” but assured them that India would adapt. "We will explore new markets. India is such a big market, it will be consumed here itself," Chouhan said, emphasising the strength of domestic demand.

President Donald Trump assailed Goldman Sachs Group Inc. Chief Executive Officer David Solomon, saying the bank made a “bad prediction” about the impact of Trump’s sweeping tariff agenda on markets and consumer costs.

“David Solomon and Goldman Sachs refuse to give credit where credit is due,” the president said on his social-media platform Tuesday. “They made a bad prediction a long time ago on both the Market repercussion and the Tariffs themselves, and they were wrong, just like they are wrong about so much else.”

US tariff revenue reached a fresh monthly record in July, though the increase wasn’t enough to prevent a widening in the monthly budget deficit.

Customs duties climbed to $28 billion last month, marking a 273% surge over July last year, a Treasury Department release showed on Tuesday.

At the same time, the monthly budget deficit came in at $291 billion, or 10% more than the same month a year before, after accounting for calendar differences.

US trade officials will meet again with their Chinese counterparts within the next two or three months to discuss the future of the economic relationship between the two countries, Treasury Secretary Scott Bessent said on Tuesday, a day after the Trump administration extended a pause on sharply higher US tariffs on Chinese imports for another 90 days.

The dollar fell across the board on Tuesday after data showed that U.S. consumer prices increased moderately in July, leaving intact the case for a Federal Reserve interest-rate cut next month.

The consumer price index rose 0.2% last month after gaining 0.3% in June, the Labor Department's Bureau of Labor Statistics said on Tuesday.

India tariff news LIVE updates: US President Donald Trump assailed Goldman Sachs Group Inc. Chief Executive Officer David Solomon, saying the bank made a “bad prediction” about the impact of Trump’s sweeping tariff agenda on markets and consumer costs.

“David Solomon and Goldman Sachs refuse to give credit where credit is due,” the president said on Truth Social on Tuesday. “They made a bad prediction a long time ago on both the Market repercussion and the Tariffs themselves, and they were wrong, just like they are wrong about so much else.”

The president's remarks follow a research note Sunday by Goldman economists that said the impact of the president’s tariffs on consumer prices was just starting to be felt.

India tariff news LIVE updates: Union agriculture minister Shivraj Singh Chouhan has stated that India will work to explore new markets in view of high tariffs from the US. Reiterating PM Modi's recent statement, the BJP leader said that India will not compromise on the “interests of the country's farmers even if it means paying a heavy price”.

"Farmers, don't worry. Let's see what will happen. We are a country of 140 crore people. There will be a little bit of difficulty but we will see. We will explore new markets. India is such a big market, it will be consumed here itself," said Chouhan while addressing a group of farmer leaders in Delhi

"India's 140 crore population is not a weakness but our strength," he said, adding that "this is our testing time and we need not bow down (before the US)"

"Koi jhukne ka kaam nahin hai. Samjhauta barabari pe hota hai. Thode humare, thode tumhare (There is no need to bow down. The agreement should be between equals with give and take)," he added further.

India tariff news LIVE updates: Agriculture Minister Shivraj Singh Chouhan on Tuesday asked farmers "not to worry" about the current "testing times" due to higher US tariffs. The BJP leader added that the Indian market will explore new geographies for exporting farm produce.

Asserting that India has taken a clear stand, Chouhan reiterated PM Modi's statement and said that that "he will not compromise the interests of the country's farmers even if he has to pay a heavy price" as "India's voice and Indian farmers' voice".

The US has raised tariffs on Indian goods to 50 per cent, even as the two nations discuss a bilateral trade deal. The trade deal has been stuck over the US demand for greater access to India's agricultural and dairy market.

"Farmers, don't worry. Let's see what will happen. We are a country of 140 crore people. There will be a little bit of difficulty but we will see. We will explore new markets. India is such a big market, it will be consumed here itself," he said, addressing a group of farmer leaders at the Pusa complex here.

India tariff news LIVE updates: India and China are set to resume direct flights as soon as September, as the two countries seek to reset political ties after years of tensions, sources have said.

The Indian government has reportedly asked airlines in the country to prepare flights to China at short notice, with an official announcement likely as soon as the Shanghai Cooperation Organisation (SCO) summit at the end of this month in China.

This move comes as India and China work towards a diplomatic reset amid the ongoing trade row with the United States over President Donald Trump's aggressive moves on tariffs.

India tariff news LIVE updates: South Africa will offer a "generous" new trade deal to the United States to avoid 30-percent tariffs, ministers said Tuesday.

As per an AFP report, the ministers did not release details of the new offer but said previously discussed measures to increase imports of US poultry, blueberries and pork had been finalised.

"When the document is eventually made public, I think you would see it as a very broad, generous and ambitious offer to the United States on trade," Agriculture Minister John Steenhuisen said at a press briefing.

India tariff news LIVE updates: Israel's Prime Minister Benjamin Netanyahu last week said it will be in the interest of both India and the United States (US) to resolve the tariff issue, reports said.

US President Donald Trump has doubled tariffs on India to 50 per cent citing Russian oil purchase. The 50 per cent tariff was imposed in two phases, a 25 per cent levy was first announced on July 30 and the additional 25 per cent announced last week.

India tariff news LIVE updates: Brazilian President Luiz Inacio Lula da Silva spoke with Chinese president Xi Jinping as part of his outreach to allies after Donald Trump thrust Latin America’s biggest economy into the middle of his global trade war. This call between Lula and Xi comes after the Brazillian president dialed India's prime minister Narendra Modi and Russian President Vladimir Putin.

A readout from Brazil’s government said the two leaders spoke for about one hour and exchanged views on international affairs, including recent developments around the Russia-Ukraine war. Brazil’s president, known universally as Lula, and Chinese leader Xi Jinping also agreed on “upholding multilateralism” through the Group of 20 and BRICS.

India tariff news LIVE updates: The government on Tuesday said no additional tariffs have been imposed on Indian exports to the US in sectors such as pharmaceuticals, and electronics, yet.

In a written reply to the Lok Sabha, Minister of State for Commerce and Industry Jitin Prasada said reciprocal tariff at the rate of 25 per cent has been imposed on certain goods exported from India to the US, effective August 7.

It is estimated that around 55 per cent of the total value of India's merchandise exports to the US is subjected to this reciprocal tariff, he said, adding that additional ad valorem rate of duty of 25 per cent with effect from August 27 has been imposed on certain goods exported from India.

"No additional tariffs have been imposed on Indian exports to the US in sectors like pharmaceuticals, and electronics as yet," Prasada said.

India tariff news LIVE updates: Andhra Pradesh chief minister and TDP chief N Chandrababu Naidu on Monday countered US President Donald Trump's "dead economy" jibe at India.

The TDP chief said the country was the "fastest one in the world moving ahead with which nobody can compete".

The NDA leader further asserted that the future will determine "whose economies are dead economies", adding the South Asian giant has some advantages and underwent economic reforms at the right time in 1991.

"US President said ours (India's) is a dead economy. No, it is the only economy moving ahead fast in the world. Nobody can compete with it," said Naidu.

Ahead of the additional 25 percent tariffs on India, the US president slammed India and its close ties with Russia, referring to both nations as “dead economies.”

India tariff news LIVE updates: Former Rajasthan chief minister Ashok Gehlot on Wednesday targeted Prime Minister Narendra Modi, accusing him of being a "weak leader".

Claiming that India is increasingly surrounded by challenges on all fronts under Modi's leadership, Gehlot said, "US President Donald Trump has repeatedly made baseless statements against India, claiming to have mediated 30 ceasefires between India and Pakistan. Now, he is taking decisions against India's trade interests."

Gehlot also criticised Modi for not directly addressing Trump's remarks, saying that despite provocations, the prime minister has never publicly commented the US president's comments.

(via PTI)

India tariff news LIVE updates: Amid Trump's fresh tariff row, the US president has once again extended the pause of the rates for China.

Taking to Truth Social on Monday, Trump shared that he signed an executive order suspending the imposition of higher tariffs until 12:01 a.m. EST (0501 GMT) on November 10, with all other elements of the truce to remain in place.

Earlier in May, both US and China argeed to a 90-day pause on their steep tariffs after talks in Geneva. Then in July, American and Chinese officials agreed to seek an extension of their 90-day tariff truce after two days of talks in Stockholm.

India tariff news LIVE updates: A Sri Lankan lawmaker has urged Parliament not to take lightly the impact of the US tariffs on Delhi, emphasising that India was the only country to provide crucial assistance during the island’s worst economic crisis, a media report said on Monday.

Speaking in Parliament, Harsha de Silva defended New Delhi’s opposition to what he described as US President Donald Trump’s “unfair and selective” trade measures.

“Don’t laugh at India. Don’t mock them when they are down because when we were down, they were the only ones to lend us a hand,” he was quoted as saying by the Daily Mirror. “It ain’t over until the fat lady sings. We witnessed you laughing. Don’t laugh. India expected the tariffs to come down to 15%, and so did we.”

Sri Lanka’s financial collapse in 2022 led to fuel shortages, scarcity of food and medicine, and depleted foreign reserves, resulting in its first-ever debt default.

India became Colombo’s largest supporter, extending over USD 4 billion in credit lines, currency swaps, deferred loan repayments, and numerous shipments of humanitarian aid.

India tariff news LIVE updates: Kerala chief minister Pinarayi Vijayan on Monday stated that the recent increase in US tariffs would have a severe impact on the state’s economy, and the government plans to undertake a comprehensive assessment of the situation.

Speaking at a government event, Vijayan described the US tariff hike as a major setback for both India’s economy and Kerala specifically.

He highlighted that the US is the second-largest importer of Kerala’s agricultural products, accounting for over 20 per cent of the state’s exports of cashew nuts, rice, vegetables, processed fruits, and cereal flour.

Kerala also hosts the highest number of seafood processing units in the country, and the increased tariffs are expected to adversely affect seafood exports as well, the chief minister said, according to an official statement.

India tariff news LIVE updates: Ambassador of Brazil to India, Kenneth Felix Haczynski, stated that US President Donald Trump's high tariffs on India and Brazil present both a challenge and an opportunity to seek trusted partners.

Speaking to ANI, Haczynski conveyed Brazil’s willingness to enhance cooperation with India.

He said, "The unexpected imposition of high tariffs presents both a challenge and an opportunity for our country to seek out trusted partners and expand business relations. During a conversation with PM Modi, we highlighted the long-standing relationship between the two countries, emphasising their potential to do more together. Brazil is open to negotiating tariffs, though within the limits of its sovereignty."

India tariff news LIVE updates: Maharashtra fisheries minister Nitesh Rane said the recent hike in tariffs on shrimp exported from India to the United States should be viewed as an opportunity to grow the country’s domestic market for prawns and other seafood. Urging stakeholders not to be overly concerned about US duties, Rane pointed out that Europe and Vietnam remain strong export destinations for Indian shrimp, while the domestic seafood market is large enough to support farmers and fishermen.

Last week, the US increased reciprocal tariffs on Indian goods from 25 per cent to as high as 50 per cent. According to the Seafood Exporters Association of India (SEAI), shrimp exports worth USD 2 billion to the US face major disruptions due to the higher duties imposed by President Donald Trump. In 2024, India exported USD 2.8 billion worth of shrimp to the US and has shipped USD 500 million so far this year. SEAI secretary general K. N. Raghavan noted that the new tariffs make Indian seafood far less competitive compared with China, Vietnam and Thailand, which face US duties of only 20–30 per cent. Rane maintained that the increased US tariff on shrimp presents an opportunity to strengthen India’s domestic market.