Tariff news highlights: Treasury Secy expresses confidence in India-US ties, says 'will come together at the end of day'

Tariff news LIVE: Tata Steel CEO and MD TV Narendran on Wednesday said the 50% tariff imposed by the US government will not have much impact on India’s domestic steel sector, though the company’s European operations may be affected.

“The US tariff will not have much direct impact on the domestic steel sector as it does not export steel to them, but Tata Steel's European operation, which exports steel to the US, may feel the pinch as a similar tariff on steel was applicable there too,” Narendran said.

He noted that while the tariff could hurt other sectors like textiles and gems & jewellery, domestic steel demand remains strong

RSS chief Mohan Bhagwat on Wednesday said that international trade should take place voluntarily and not under pressure, as the 50% Trump tariffs came into effect.

"Being aatmnirbhar (self-reliant) does not mean stopping imports. The world moves because it is interdependent. So export-import will continue. However, there should be no pressure in it," Bhagwat said.

He said swadeshi does not mean not importing goods that the country already has or can manufacture easily.

As the 25 per cent additional US trade tariff on India took effect on Wednesday, the Centre affirmed that there is "no cause for panic", saying that the impact is unlikely to be as severe as feared, news agency PTI reported, citing government sources.

There is "no cause for panic, the impact is unlikely to be as severe as feared given the diversified nature of Indian exports", PTI cited government sources as saying.

"It is a temporary phase in a long-term relationship," they further reportedly added.

America is the largest buyer of Indian gems and jewellery, accounting for nearly 30 per cent of the sector's global sales.

Last year alone, the exports stood at $10 billion, roughly ₹87,600 crore.

The sector is now looking at a serious disruption due to Trump tariff hikes. Surat, which is the global hub for diamond polishing, is already feeling the pressure with US orders taking a sharp dip, Reuters reported.

Last year, India exported $2.6 billion ( ₹22,800 crore) worth of seafood to the US, a Reuters report said, adding that shrimp accounted for 40 per cent of that.

Major US clients include Walmart and Kroger.

Exporters say that the new tariffs have led to a halt in orders, with some shrimp farmers considering quitting the trade altogether.

FICCI's Director General, Jyoti Vij, said on US tariff on India, "Our macroeconomic parameters are quite strong. Our growth rate is the highest among many other countries... The government is doing a lot of work towards ease of doing business and decriminalisation... This will further boost our economy... This is no doubt a big challenge for us, but we can overcome it by doing all the reforms we are already undertaking."

US Treasury Secretary Scott Bessent, in an interview with Fox Business, expressed confidence in Washington's ties with New Delhi amid the double tariff row.

"I do think India's the world's largest democracy, the US is the world's largest economy. I think at the end of the day we will come together," he said.

Former senior diplomat Mahesh Sachdev told news agency ANI, "On the occasion of Ganesh Chaturthi, President Donald Trump has decided to usher in a new era in US-India bilateral commercial relationship... $60.2 billion of Indian exports are going to be subject to 50% tariffs, 3.6% will be subject to 25% tariffs. Approximately $30 billion will be exempt from tariffs... Textiles, gems and jewellery, and seafood are going to take a serious hit. They are labour-intensive... To a lesser extent, leather and footwear will also be affected... It is a serious setback but not exactly a disaster."

Sanjay Nagar, President of the Associated Chambers of Commerce and Industry of India, told news agency ANI, "The 50% US tariff is undoubtedly a challenge, but Indian industry has always thrived under pressure. Our businesses have a proven track record of adapting quickly, innovating and expanding into new frontiers."

"Exporters across textiles, gems & jewellery, agriculture and shrimps face steep duties, yet they are accelerating diversification into Africa, Latin America, Europe and ASEAN, while strengthening competitiveness at home. With strong government support, this disruption will not weaken India’s trade ambitions, it will only strengthen India’s resolve toward resilience, self-reliance and global leadership," he added.

Samajwadi Party MP Awadhesh Prasad said on Wednesday that the 50 per cent tariffs imposed by Trump on India will not impact the nation's economy and development.

"This is an attack on our sovereignty. Their decision will not impact our country's economy and development. It would be beneficial if the US president refrained from such ideology, decisions and commentaries... We are capable enough. Whether it is 50% or 100%, it will make no difference," Prasad told ANI.

Minister of State of External Affairs, Kirti Vardhan Singh, reacted to Trump's 50 per cent tariff taking effect in the nation on Wednesday.

In what is the first response from any Indian government official over this today, Singh told reporters, "Our economy is very strong, our industries are very strong, and we will certainly not let our country suffer."

Jayesh Patel, diamond manufacturer and trader, said, "Every country has its own policy. We will have to see how it goes. Since the US is a very large market, we may face some challenges due to tariffs; however, there are also European nations and Russia where we can sell."

"The PM is right in saying that we should not bow down before any country. If this continues, we might have to scale down our business and find markets in other countries," he told news agency ANI.

The diamond industry stakeholders have said that the export of diamonds is likely to be hit for a short time as 50 per cent tariff imposed by the US on Indian goods took effect on Wednesday.

Surat diamond association president, Jagdish Khunt, said, "There is no doubt that 50% US tariff will affect Surat diamond industry, but the effect will be short-term, not long-term. No other country can replace India, as we account for 90% of the world's diamond production (cutting and polishing of natural diamonds). The US will have to remain dependent on India."

Navneet Jhalani, Coordinator, Rajasthan Handicrafts Exporters Association, told news agency ANI, "Rajasthan's handicraft export is around ₹9000 crores. Out of the total exports, 50% go to the US. Now the tariff on our products will rise to 50%. Our buyers have halted both existing and new orders. Being a labour-intensive sector, it provides direct and indirect employment to many. Three lakh people will be affected due to this."

Vice President of Jewellers Association Jaipur, Raju Mangodiwala, reacted to the 50% Trump tariffs taking effect in India on Wednesday and said, "It is going to have a huge impact on the gems and jewellery industry. There is an atmosphere of panic in the industry. Some factories export the gems and jewellery only to the US. We will have to wait and see how the situation develops."

"Probably, factories might have to scale down production and smaller industries might have to temporarily shut. I believe a solution will emerge after talks between PM Modi and the US...We will need to find alternative markets to sell to. There is no need to be scared. We should wait and watch," he added.

The Chamber of Trade and Industry (CTI) wrote a letter to Prime Minister Narendra Modi stating that the 50 per cent tariff imposed by the US could threaten the livelihoods of lakhs of Indians and impact industries, news agency PTI reported.

He explained that because of the increased tariffs, Indian goods will be up to 35 per cent costlier in the American market compared to competitors, prompting buyers to look elsewhere.

After US President Donald Trump imposed tariffs on Indian imports, Congress president Mallikarjun Kharge on Wednesday lashed out at Prime Minister Narendra Modi, stating that this step of his "dear friend" would make India lose an estimated ₹2.17 Lakh Crore as the first jolt across 10 sectors alone. In a post on X, Kharge stated that the Modi government has done "absolutely nothing" to mitigate the impact and protect farmer livelihoods.

Raju Mangodiwala, the president of the Jaipur Jewellery Association, stated on Wednesday that the US tariffs on Indian imports will have a significant impact on India's gems and jewellery sector.

He further hoped for a solution from the Union Government, stating that the gems and jewellery trade from Jaipur to the US is worth ₹11 to 12 lakh crores. “Narendra Modi, will find a solution to this soon,” he told ANI.

After weeks of negotiations, US tariffs on India have taken effect today. Here's a timeline of the events leading up to the tariff imposition. On July 31, Trump announced 25 per cent tariffs on Indian goods. On August 7, the first wave of tariffs (25 per cent) kicked in, and Donald Trump announced 25 per cent additional tariffs for buying Russian oil.

US President Donald Trump reiterated his claims of brokering peace between India and Pakistan, claiming that he warned both countries of high tariffs. He went on to claim that his intervention forced Islamabad to step back. “But I said, What's going on? I said, I don't want to make a trade deal…. I said, 'no, no, I don't want to make a trade deal with you. You guys are going to end up in a nuclear war."

Criticising the Modi government on Wednesday, Congress leader Udit Raj said that PM Modi lied about the impact of US tariffs on farmers, news agency PTI reported.“Modi ji lied that he will not compromise with the interests of farmers, but this tariff will impact the farmers of Andhra, Telangana and coastal areas. He also said that PM "doesn’t dare to fight with America.”

Market Expert Ajay Bagga said that the imposed tariff might lead to a fall in India's exports to the US. Talking to PTI, he said, “Overall exports of goods to the US last year were 86.7 billion dollars. Out of that, roughly about 55-60 billion dollars come under this 50 per cent tariff. There will be an impact of about 25-30 billion dollars in a fall in export volumes to the US.”

Federation of Indian Export Organisations Regional Chairman Yogesh Gupta on Wednesday said that the tariff imposition on India that came into effect today is “not a very good development.” He further said that this puts India into a disadvantage position and that it will act against interest of Indian exporters.

Taking a swipe at the government after the additional tariffs imposed by the US on India came into effect on Wednesday, the Congress said PM Modi used his supposedly winning formula of “MAGA MIGA=MEGA” earlier this year but this “Modi-made MEGA” has now become a “MAHA headache” for India, PTI reported.

Congress general secretary in-charge communications, Jairam Ramesh, said the "Trump double tariff" has come into effect, which will undoubtedly hit India's labour-intensive exports to the US.