Despite concerns over President Trump’s increased tariffs on Indian exports, the rupee opened stronger against the US dollar, rising by 3 paise to 87.69.
By Aniket Chakraborty
Aug 7, 2025
WORLD NEWS
This comes a day after Trump announced a 25% additional tariff on Indian goods, pushing the total tariffs on Indian exports to 50%.
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The new tariffs were imposed as a "penalty" for India’s continued imports of Russian crude oil, drawing sharp criticism from India.
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The Ministry of External Affairs (MEA) responded, calling the move “unfair, unjustified, and unreasonable,” arguing that India’s oil imports are based on energy security needs.
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India pointed out that several other countries are also importing Russian oil, yet the US’s focus on India is unjust.
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Despite the tariff escalation, the rupee showed resilience, suggesting confidence in India’s financial stability amid the US pressure.
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The tariffs come at a time of ongoing trade negotiations between India and the US, with both countries trying to navigate complex trade and geopolitical tensions.
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While the impact of these tariffs could hurt Indian exports, especially in sectors like textiles and seafood, the rupee’s performance remains surprisingly strong.
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Analysts suggest that the rupee’s strength reflects optimism in India’s economic fundamentals, despite external pressures.
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The tariff dispute highlights the growing tensions between India and the US, especially regarding energy imports and geopolitical interests.