Prime Minister Narendra Modi will preside over a high-level Cabinet meeting on Friday at 1 p.m. to evaluate the impact of the recent sharp increase in US tariffs on Indian exports.
The meeting comes amid rising trade tensions between India and the United States after the US government announced a total 50% tariff on Indian goods. The discussion is expected to focus on India’s strategic response to this development.
Key Highlights
- Foreign institutional investors pulled out $4.17 billion from Indian equities in July, with the IT sector hardest hit.
- These outflows occurred amid disappointing Q1 results and global economic uncertainty, shaking investor confidence across major sectors.
On Wednesday, US President Donald Trump imposed an additional 25% tariff, citing India’s continued import of Russian crude oil as the main reason. This is in addition to a previous 25% hike that took effect on July 20.
India has strongly criticized the move. The Ministry of External Affairs described the decision as "unfair, unjustified, and unreasonable," asserting that India's energy security and strategic autonomy must be respected.
Also Read: Centre Slams Trump's 50% Tariff, Calls it Unfair and Unjustified
Prime Minister Modi also addressed the issue in a public statement during the MS Swaminathan Centenary International Conference in Delhi on Thursday. Reaffirming his commitment to the welfare of farmers, livestock owners, and fishermen, he said, "The interest of farmers is our top priority. India will never compromise on the interests of its farmers, livestock holders, and fishermen. I know I may have to pay a personal price, but I am ready. India is ready—for its farmers, fishermen, and livestock keepers."
Meanwhile, President Trump dismissed the possibility of further negotiations with India on the tariff issue. When asked by a reporter about potential talks, he responded, “No, not until we get it resolved.”
