On 7 Aug, US President Donald Trump-led administration notified 25% additional tariffs on India’s exports to the US. This takes the total tariffs applicable on India to 50%. According to Credit Rating Information Services of India Limited (CRISIL), 'The imposition of higher tariffs by the US will significantly impact micro, small and medium enterprises (MSMEs), which account for as much as 45% of India's total exports. Of the five sectors expected to see meaningful impact, gems and jewellery (others being shrimp, textiles, automotive, and chemicals) has the highest exposure to the US at USD 10B. We expect export volumes to contract.' The additional tariffs are due to India continuing to buy Russian oil but petroleum is not affected by the tariffs. Agricultural produce worth USD 6B including Panjab’s Basmati, Kerala’s spices, and Assam’s tea are affected. With the fisheries harvest season round the corner, shrimp farmers in Panjab, already struggling to make the crop economically viable, now will struggle after the US tariffs come into effect. Trade estimates peg Panjab’s 2024 shrimp production at around USD 9M, with buyers offering an average best rate of USD 3.98 per kg. In 2025, this rate offered has come down to USD 3 per kg, attributed to the US government’s new taxation policy. As per officials and aquaculturists, engaged in cultivation of aquatic organisms such as fish, crustaceans, and shellfish like shrimp, the US is the biggest market for Indian shrimp. Meanwhile, after the snub by the US, India has been making overtures towards China and Russia. Indian Prime Minister Narendra Modi met Russian President Vladimir Putin and Chinese President Xi Jinping on 1 Sep on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit 2025 in Tianjin, China. The three leaders exchanged handshakes, hugs, and smiles in a rare display of camaraderie. The SCO condemned the 22 Apr Pahalgam terrorist attack, extended condolences to the victims, and called for justice against those responsible. Yet, it did not call out Pakistan on whom India has attributed responsibility for the attack. Nor did it endorse India's Operation Sindoor (vermilion mark) in which China supported Pakistan (earlier coverage).
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