New Delhi, Aug. 7 -- US President Donald Trump has imposed an additional 25% tariff on Indian imports as a "penalty" for New Delhi's continued purchase of Russian crude oil. This move takes the total US tariff burden on Indian exports to 50% - 20% higher than that on Chinese goods - significantly denting India's export competitiveness.

The new tariff structure, announced late Wednesday, will come into effect after a 21-day grace period, starting August 27, 2025. While this window leaves room for a negotiated resolution, the options appear limited for both sides.

"We expect the markets to fall by 1-2% in a knee-jerk reaction, but most would expect a resolution of the same," said Dhiraj Relli, MD & CEO of HDFC Securities. He estimates tha...