The year 2025 was a very tough and historic year for the Indian Rupee. Market volatility along with US protectionism and India’s macroeconomic pressures combined to create a “perfect storm”. Due to the aggressive trade policies of the Trump administration, tariffs on India reached 50% by August, with the 25% surcharge on Russian oil being a big blow.

India’s “China Plus One” advantage was weakened by comparatively lower tariffs on Vietnam and China. Its impact was clearly visible on labour-intensive sectors like textiles, gems & jewelery and marine exports.

Rupee crossed psychological levels of ₹90–₹91 in December 2025. FII outflows, rising trade deficit and RBI’s market-driven stance made the rupee Asia’s worst performer. Imported inflation increased and put pressure on GDP growth by 0.3–0.5%.

However, Aatmanirbhar Bharat, Make in India, export diversification and possible India-US BTA raised new hopes for 2026.

Lawmakers Warn Trump: A new tension has arisen in the trade relations between the two countries after US President Donald Trump imposed high tariffs of up to 50 percent on some Indian products. This step of the American administration has not only affected India’s economy, but opposition to it is also increasing within America. Experts and lawmakers say such a drastic decision on tariffs could have a long-term adverse impact on India-US relations, which have been based on cooperation, security and economic partnership for decades. It is also being said that due to increase in trade barriers, the profits of American companies have decreased and due to increase in import costs, there has been additional burden on consumers.

Indian-American MP Amy Bera raised this issue seriously in the US Congress and criticized many policies of the Trump administration. In particular, he termed the additional fee of $100,000 on H1B visa as excessive and impractical. Amy Bera says that this heavy duty is weakening the ability of American companies to include foreign talent in their industries. Given the important role Indian professionals play in Silicon Valley and the tech industry, such a move harms America’s technological edge. He also said that these additional costs hurt small and medium-sized American companies the most, who already face global competition.

Tariff threatens US-India people-to-people connect

Behera also warned that high tariffs and stringent visa policies are not only having an economic impact, but are also harming the people-to-people connect between the two countries. The biggest strength of India-US relations has been people-to-people cooperation, technical exchange and education-trade relations. If it is disrupted, it will directly weaken the long-term strategic partnership between the two countries. In this context, he referred to Prime Minister Narendra Modi’s recent meetings with Russian President Vladimir Putin and Chinese President Xi Jinping and indicated that tough American policies could tilt India towards other superpowers.

Democrat MP Pramila Jayapal widely criticized the tariff policy during her address to Congress. According to him, the high import duty policy of the Trump administration has definitely affected the Indian economy, but due to this, American businesses and consumers are also suffering equally. Due to high import costs, the production of American companies is becoming expensive, due to which the prices of their products are increasing and competition is decreasing. He warned that this situation could pose a threat to America’s economic stability and the health of the market.

Anti-Indian sentiment is increasing in America

Expressing special concern, Pramila Jaipal said that anti-Indian sentiment is increasing rapidly in America in recent years. He says that the tense trade environment between India and America and the strictness of visa policies is further increasing this sentiment. Whereas the reality is that the contribution of Indian-Americans is extremely important in the fields of American economy, education, technology and innovation. Crores of people of Indian origin play an important role in American development through taxes, employment and investment in America, hence such policies are also against America’s own interests.

Talks regarding trade deal have been going on between India and America for a long time. This agreement has been broken once, but now talks have started again. However, uncertainty over this has increased due to rising tariffs and political rhetoric. On the other hand, India has recently reduced the purchase of crude oil from China, due to which America has imposed an additional 25 percent tariff on India. Due to this, geopolitical complications are also increasing in India-America relations. If the tariff war continues, India may gradually lean more towards countries like Russia and the Middle East for energy and trade, which could weaken America’s strategic position in the Asia-Pacific region.

Read this also: Rupee again in the abyss, due to these three reasons the Indian currency reached record low.

US President Donald Trump has said that India should not “dump” (sell at cheap prices) rice in the US market and he will “deal with” the issue. Trump warned that this ‘problem’ would be easily solved by imposing tariffs. On Monday (December 8, 2025), Trump held a roundtable meeting with representatives of the farming and agriculture sector and key members of his cabinet, especially Finance Minister Scott Besant and Agriculture Minister Brook Rollins, at the ‘White House’, the official residence and office of the US President. He announced $12 billion in federal aid for farmers.

Merrill Kennedy, who runs her family’s agricultural business ‘Kennedy Rice Mill’ in Louisiana, told Trump that rice producers in the southern part of the country are ‘really struggling’ and that other countries are ‘dumping’ rice into the US market, that is, selling rice at very cheap prices.

When Trump asked which countries were selling rice to America at cheaper prices, Kennedy, sitting next to the President, replied, ‘India and Thailand; Even China is selling rice to Puerto Rico at cheap prices. Puerto Rico was once the largest market for American rice. We have not sent rice to Puerto Rico for many years. Kennedy said the tariffs imposed by the Trump administration are working, “but we need to increase them further.”

Why is India allowed to do this? Why did Trump ask this?

Trump then looked at Besant and said, ‘India, tell me about India. Why is India allowed to do this? They will have to pay fees. Do they have discount on rice? To this Besant said, ‘No sir, we are currently negotiating a trade deal with them.’ Kennedy also told Trump that a case was going on against India in the World Trade Organization (WTO). Trump said it could be ‘dealt with very easily.’ He said, ‘This will be solved very quickly by imposing tariffs on those countries which are sending goods illegally. Your problem will be solved in a day, so we have to win the case in the Supreme Court.

India is the world’s largest rice producing country

According to data from the ‘Indian Rice Exports Federation’, India is the world’s largest rice producing country and holds 28 percent share in the global market. It is also the top exporter, with a share of 30.3 percent in global exports in 2024-25. Among the rice varieties that India exports globally, ‘Sona Masoori’ is liked in markets like America and Australia. Trump has imposed 50 percent duty on India, which is the highest in the world. This also includes 25 percent duty on oil purchases from Russia.

In America, President Donald Trump has indicated that he is considering imposing new tariffs on many agricultural products including rice coming from India. This statement has come at a time when efforts are being made to take the trade agreement between India and America forward again. The Trump administration believes that India and some other countries are ‘dumping cheap agricultural goods’ into the US market, causing losses to local farmers. This news can be a shock for those Indian farmers and exporters, for whom the US market has been the largest global buyer.

A major reason for stalling of trade deals is the dispute over agricultural imports.
The ongoing trade talks between India and America have been stuck for months and the main reason for this is the dispute over agricultural products. According to the Economic Times report, America wants India to give more space to dairy, meat, soya and agricultural products in its market, while India argues that this will have a deep impact on its small farmers. Due to this, the Trump government has already increased tariffs on many Indian products. Despite several rounds of talks between India and America, the trade agreement has not progressed. The biggest reason for this is disputes related to agriculture and food imports.

The things on which Trump is adamant-

Entry of GMO crops in India
America wants India to allow Genetically Modified (GMO) technology in crops like corn, soybean and wheat. But Indian scientists, farmers’ organizations and policy makers warn that this could lead to the extinction of local crop species, affect biodiversity and have serious health implications in the long run. That is why India still maintains a ban on GMO crops.

Import of American dairy products
America wants India to allow American milk, cheese, butter and ghee in its market. But India is the largest milk producing country in the world and more than 3 crore small farmers here are dependent on dairy. Apart from this, there is also a big religious and cultural objection – in America, enzymes made from animal bones are added to the food of cows. India considers it ‘non-veg milk’ and there is opposition to it on religious grounds also.

Demand to reduce import duty on agricultural products
America wants India to reduce taxes on agricultural products like wheat, rice, soybean, corn, apple and grapes, but India keeps high tariffs on these to protect its farmers so that Indian production is not affected by cheap imports.

India’s stance – no compromise with farmers and food security
Despite pressure from many countries including the World Trade Organization (WTO) and America, the Indian government is not in favor of changing its food security policy. Under the Pradhan Mantri Garib Kalyan Anna Yojana, India provides free food grains to 80 crore people. The poverty rate in India was 27% in 2011-12. Which has reduced to 5.3% in 2022-23. Therefore, India argues that agricultural self-reliance and food security are part of the national policy and cannot be changed under foreign pressure.

US President Donald Trump has indicated that his administration may consider imposing new tariffs on foreign agricultural products, including Indian rice and Canadian fertilizers. Trump made this statement in a meeting held at the White House, where farmers complained about the impact on the American market due to cheap foreign products. This meeting was organized during the $12 billion relief package announced for American farmers.

American farmers troubled by foreign cheap rice
The farmers present in the meeting alleged that some countries are selling rice at low prices in the American market, causing huge losses to domestic farmers. On this Trump said, ‘They are cheating.’ He indicated that these allegations would be investigated and if necessary, tariffs would be imposed.

Merrill Kennedy, CEO of Louisiana’s Kennedy Rice Mill, claimed that India, Thailand and China are the main countries of this alleged dumping. He said that China is sending large quantities of rice, especially to Puerto Rico where the supply of American rice has almost stopped. Kennedy said, ‘We have not sent rice there for years. Farmers are badly affected in the southern states.

The tariffs are working, but…
Merrill Kennedy said at the meeting that the tariffs are proving effective, but they need to be more stringent. Trump expressed surprise at this and said, ‘You want more?’ But he agreed that if any country is dumping then action will be taken against it.

Trump instructed US Finance Minister Scott Besant, who was present at the meeting, to note down the list of countries mentioned by the farmers. When the farmers started giving information about the Indian subsidy policy, Trump interrupted and said, ‘First tell me the names of the countries… India, who else?’

Besant cited India, Thailand and China as the main sources and said that more countries may be included in the list, details of which will be given later. Trump assured that ‘action will be taken very soon’ on this matter.

Canadian fertilizers also on target
During the discussion, Trump indicated that heavy duty could also be imposed on fertilizers coming from Canada so that domestic production could be promoted. According to Bloomberg report, both India and Canada are trying to make trade deals with the US, but there has been little progress in these talks in recent months. In August, the Trump administration imposed 50 percent tariffs on Indian products, saying India had erected barriers to the US market and continued buying oil from Russia.

India-US trade talks on 10–11 December
A senior US delegation led by Rick Switzer, deputy head of the Office of the US Trade Representative (USTR), will resume trade talks with India this week. Both sides will discuss many important issues on 10 and 11 December and try to take forward the Bilateral Trade Agreement (BTA).

Commerce Secretary Rajesh Aggarwal will lead the talks from the Indian side. He said that India is trying to finalize the first phase of the agreement by the end of this year. Speaking at FICCI’s annual meeting on November 28, Aggarwal said, ‘I am confident that we will complete the agreement within this calendar year.’

Trump Tariffs: US President Donald Trump, who has imposed tariffs that have rattled the world this year, is increasingly defending his actions. Amidst severe criticism, he has repeatedly claimed that his tariff policy is not only strengthening the American economy, but has also proved helpful in preventing conflict at the international level. Now Trump has made another sensational claim saying that he has stopped eight wars so far, out of which five were stopped due to the fear of tariffs.

Trump’s new claim

Trump said that due to tariff, not only billions of dollars have come into the US treasury, but it has also become an effective weapon of international diplomacy. Posting on Truth Social on Sunday, he wrote that a large amount of money and investment from abroad has returned to America due to threats of tariffs. According to him, due to these warnings, five out of eight possible wars in the world could be prevented.

Trump has often claimed that he has defused many conflicts globally, including the ceasefire between India and Pakistan after the Pahalgam terror attack. He also said that at that time he had played a role in reducing tensions by threatening to impose 350% tariff.

Contribution of tariffs to the US economy

President Trump says that tariffs are very important for the American economy and national security. According to him, in the last nine months alone the US stock market has reached all-time highs nine times.

However, he has been criticized worldwide regarding his tariff policy. Critics say that this has increased instability in global trade. India has also been imposed high tariffs of up to 50% by the US, out of which 25% tariffs have been imposed citing India’s purchase of crude oil from Russia.

Impact on India and government’s response

US high tariffs have had a direct impact on India’s jewellery, shrimp exports, and many other items. However, the Indian government has announced separate aid packages to protect the interests of the affected areas. Along with this, India has also intensified work towards finding alternatives to America for import and export while improving economic relations with China.

Also read: Big updates on 8th Pay Commission, NC-JCM’s letter to PM Modi, this big demand on ToR

Now Tank Global Trade Research Initiative has issued a statement regarding the trade deal between America and India, asking America to remove 25% additional tariff on Indian goods. Because of this, India has reduced the limit of purchasing oil from Russia. Nearly two-thirds of the cuts have been made by India this month.
what gtri said
According to the information, GTIR said, ‘India has reduced the import of crude oil from Russia. Therefore, any additional tariff now makes no sense.

Let us tell you, America had imposed 25% tariff on India because India was buying crude oil from Russia. Earlier, US President Donald Trump had admitted that India’s oil purchases from Russia have decreased significantly.

Here, GTRI has clearly said that Trump should now remove the additional 25% tariff without any delay. GIRI has not justified this duty for Indian exporters. It has also been said that maintaining this duty may harm the trade deal between the two countries. both countries

Trust will increase in both countries
GTRI believes that if the duty is refunded on time, it will keep Trump’s commitment. India will also get good results from this. Besides, the relations between the two countries will also get strengthened. Also, removal of additional duties will restore parity with economies like China.

Here, since September, the import of American petroleum crude oil has increased by 66.9% to 5.7 billion dollars. This is an increase of 36.3% in the total petroleum and production exports from America. Here, America’s concern that Indian refinery companies were buying oil from Russia and sending it to America will end.

The new trade deal between India and America is now considered almost certain. After several rounds of talks between the two countries, this discussion has now reached the final stage. The government says that the agreement will happen only when it is in the interest of both the countries.

Awaiting America’s reply
According to government sources, most of the issues have been agreed upon on the trade agreement between India and America. Now the final reply is awaited from America. A senior official said that ‘the talks have been completed to a large extent and now perhaps there will be no need for any further rounds.’

Trump had indicated to reduce tariffs
Earlier, US President Donald Trump had said that America is ready to reduce the tariff imposed on India by 50%. He had indicated that the two countries are close to a comprehensive trade agreement.

‘We want a more balanced agreement in the interest of India’ – Piyush Goyal
Commerce and Industry Minister Piyush Goyal said that India wants a just and balanced agreement. He said, ‘We are working to make a good trade agreement in the interest of India. It could happen any time – tomorrow, next month or next year. But the government is fully prepared.

Five rounds of talks completed
So far, five rounds of talks have taken place between the two countries at the level of officials. Apart from this, Piyush Goyal and Foreign Minister S. Jaishankar has also met his American counterparts.

Why is this agreement important for India
This trade agreement can prove to be a very important step for India. Through this, trade between the two countries will increase, Indian companies will get new opportunities in the American market and India’s position will become stronger in global trade.

US President Donald Trump is well known around the world for his strict and erratic behavior. No one can say when and what Trump will do. The proof of this is given by a video going viral on social media platforms, in which US President Donald Trump is seen dancing on the stage.

Actually, the video going viral on social media is of US President Trump’s recent visit to Japan. In which President Trump is seen in a very jolly mood. Even Trump is in such a light mood that he started dancing on the stage in Japan. The video of Trump dancing is being shared widely on the internet. At the same time, many people are also raising the question that what happened that Donald Trump started dancing on the stage.

Trump’s Michael Jackson avatar is trending

Trump dance with our US Navy in Japan! pic.twitter.com/Gsm3XJT1ot

— Margo Martin (@MargoMartin47) October 28, 2025

In the video going viral on social media platforms, President Donald Trump is seen surrounded by US Navy soldiers while heavy music is playing in the background. At the same time, President Trump standing on the stage suddenly starts dancing. Everyone present there is surprised to see his Michael Jackson dancing moves, but soon after this, US Navy officers are seen cheering loudly for President Trump.

What was Trump celebrating?

US President Donald Trump has imposed heavy tariffs on many countries of the world. Apart from this, various types of sanctions have also been imposed, which also includes 50 percent tariff imposed on India for buying Russian energy. Due to this, many countries of the world are under great tension. But on the other hand, Trump is roaming and dancing in a very jolly mood.

However, this video of President Trump may be related to the agreement made during his visit to Japan. During Trump’s visit, bilateral agreements on many issues were finalized between America and Japan. Apart from this, a deal has also been finalized on a new US-Japan supply chain to reduce China’s dominance.

Also read: Relief to RSS from Karnataka HC, interim stay imposed on government order; Siddaramaiah government will challenge the decision

Former US Commerce Secretary Gina Raimondo has strongly criticized the trade policy of the Trump administration. He said that America is making a big mistake with India and its other global allies. Raimondo said that ‘America First’ is one thing, but a policy like ‘America Alone’ is destructive. Raimondo was speaking at Harvard Kennedy School’s Institute of Politics. He warned that the current American stance is distancing the country from its important economic and strategic partners.

Raimondo said, ‘In my view, one of the biggest mistakes of the Trump administration is to upset all of its allies. Without good relations with countries like Europe and Japan, America is becoming weak. He stressed that effective diplomacy at the international level requires strong partnerships, not unilateral policies.

Need to improve relations with India
Referring specifically to India, Raimondo said, ‘We are making a big mistake with India. We need to build strong trade relations with countries like India and Europe. His comments come at a time when India and America are close to finalizing their bilateral trade agreement (BTA). Agreement has been reached between the two countries on most of the issues and now work is going on on the legal language of the agreement.

Tariff dispute and some issues still remain
However, the situation regarding 50% American tariff is not yet clear. The US had imposed these tariffs on India in August, half of which are as punishment for buying energy from Russia. Due to this, India’s US exports declined by 12% in September, while total exports increased by 6.74%. An official said that ‘the talks are moving in a positive direction. Agreement has been reached on most of the issues and now only a few technical differences remain.

He said that some issues related to non-tariff barriers are still to be resolved. India hopes that the duties imposed under Section 232 of the US Trade Expansion Act – such as taxes on automobiles, steel and aluminum – will be resolved in the new agreement.