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India braces for steep US duties

Aug 26, 2025, 6:32pm EDT
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Indian Prime Minister Narendra Modi with US President Donald Trump.
Kevin Lamarque/Reuters

India maintained its position on buying Russian energy as the clock ticked down for punitive US tariffs to go into effect Wednesday.

Even as New Delhi braces for US President Donald Trump’s 50% tariff to upend industry and frustrate exporters, it hasn’t retreated from its ties to Moscow, while Indian Prime Minister Narendra Modi sees the economic pressure as a political opportunity to push for tax cuts and bureaucratic reform. The US and India are playing a game of “who will blink first,” a Chatham House expert said: Modi has apparently refused recent calls from Trump, a German newspaper reported.

India’s posture may be bolstered by S&P Global projections that predict the duties won’t dent its long-term prospects, given the country’s domestically oriented economy.

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