According to the announcement of Donald Trump, the additional 25% tariff imposed on India is going to be implemented today from 27 August 2025 and with this the total tariff imposed on India by the US will be 50 percent. This additional tariff has been imposed as fine on goods imported from the country which are related to the purchase of Russian oil. Subsequently, India’s name will be included in the list of countries imposing the most tariffs by the US. After this tariff attack on India by Trump, now everyone wants to know what options do India have to reduce its effects?
America issued notification
The formal notification of imposing 25% additional tariffs on imported goods from India has been issued by the US and with a new tariff, a total of 50% tariff on India will be effective from 12:01 am today (Eastern Standard Time). With the issue of notification, it has also been clarified by the US that India has been imposed an additional tariff in response to heavy procurement of oil from Russia. Earlier, Donald Trump had imposed a 25 percent tariff, which is effective since August 1, 2025.
What options do India have now?
Now let us tell you what options India have to deal with this 50 percent trump tariff and to reduce its effect, then it is necessary to know before that some areas like pharmaceuticals, semiconductor and energy resources have been exempted from this tariff. However, areas such as textile, gems and jewelery, leather, sea products, chemicals and auto parts are going to be highly affected by Trump tariff.
The Indo-US agreement could not be reached and after 50 percent tariff, its scope also seems less. Because America is demanding India to open Indian markets for its agriculture and dairy products and reduce tariffs on them, which India is not ready to accept, the interests of Indian farmers are hidden behind it. In such a situation, after the doors of the conversation are closed, India can take some steps and reduce the effect of the tariff. Let us tell you that India’s exports to America are around $ 87 billion, which is 2.5% of India’s GDP. In such a situation, the effect of tariff on GDP cannot be ignored. India’s trade deficit with the US in 2024 was $ 45.8 billion and it could increase further with 50% tariff.
First option: Looking for new markets outside America
Due to the high tariff on the US (US tariff on India), it has become difficult for India to export there, so India can intensify looking for new options for the US market. India will try to increase trade by increasing its exports from countries like Europe, South-East Asia and Africa. This will not only reduce dependence on the US, but will also help reduce the effects of tariffs. China is also continuously focusing on India.
Second option: new business strategy with Russia
Since America is angry with the purchase of Russian oil by India and is not in favor of any agreement. Russia is constantly assuring India that the Russian market is open to Indian goods, so India can continue interacting with Russia to make alternative trade systems (such as the rupee-ruble payment system), which can help reduce the impact of American tariffs and strictness. Apart from Russia, India can find new sources of oil imports from other countries such as Venezuela or Africa, although increased logistics and costs can become a challenge. But India can get relief by increasing its domestic oil and gas production.
Third option: Consider to increase tariffs
If there is no further solution from India President Trump over tariffs on India, if there is no further solution between the two countries, India may also be in a position to retaliate and retaliate on select American goods (such as agricultural products, medicines or technical equipment). Even before this, India has imposed additional tariffs on American almonds, apples and steel in 2019.
Fourth option: Subsidies to domestic industries
A large and relief option to reduce the impact of 50% trump tariff in India can be a subsidy to domestic industries. American tariff affected by tariffs can give subsidy or encouragement to promote its domestic industries, including textiles, ITs, etc. to reduce the effects of tariffs.
