America imposed tariffs on India, and the former CEO of Niti Aayog told what should be India's masterplan.

Posted on 7th Aug 2025 by rohit kumar

US President Donald Trump has given a big blow of a 50 percent tariff on India. This tariff is double the 25 percent tariff announced last month. Trump has imposed this strictness on India because it purchased oil from Russia.

 

This news has spread disappointment in Indian trade and industries, but India's former G-20 Sherpa and former CEO of Niti Aayog Amitabh Kant is considering it as the 'golden opportunity of the century'. He says that this crisis can lead India towards big reforms.

 

Kant wrote on X, "Trump has given us a unique opportunity to take the next big step in reforms. This crisis should be fully exploited."

 

He believes that India can take advantage of this opportunity and take its economy to new heights.

 

When will Trump's additional tariff come into effect?

 

Trump announced an additional 25 percent tariff on Wednesday evening, after which the total tariff became 50 percent. The first tariff has come into effect from 9:30 am today, August 7, while the additional tariff will be effective after 21 days. This step has been taken in response to India's buying oil from Russia.

 

Trump wrote on his social media site Truth Social, "India is our friend, but their tariffs are the highest in the world. Their non-monetary trade rules are also very strict. Also, India buys the most military equipment and energy from Russia, which is not good at this time."

 

What will be the effect of the tariff on India?

 

A 50 percent tariff will make Indian goods expensive in the American market. Most products like shrimp, organic chemicals, carpets, clothes, gems and jewellery, steel, aluminium, copper, machinery, furniture will be charged a 50 percent or more tariff. There will be a 26 percent tariff on vehicles and a 6.9 percent tariff on petroleum products.

 

This can have a big impact on India's exports. Due to an increase in the price of Indian goods, their demand in America may decrease, which will affect the trade.

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