"Once In A Generation Opportunity": Amitabh Kant On 50% US Tariff On India

US President Donald Trump doubled down on India with a 50 per cent tariff, an increase from the 25 per cent tariff announced last month, as a penalty for what he called New Delhi's continued buying of Russian oil. Amid concerns over how it could impact trade and domestic businesses, India's former G20 Sherpa Amitabh Kant is looking at the hefty tariffs as "once in a generation opportunity".

Mr Kant, former CEO of NITI Aayog, a think tank, believes Mr Trump has given India an opportunity to "take the next big leap" on reforms. He has urged to utilise the crisis fully.

"Trump has provided us a once in a generation opportunity to take the next big leap on reforms. Crisis must be fully utilised," Mr Kant wrote in a post on X (formerly Twitter).

Trump has provided us a once in a generation opportunity to take the next big leap on reforms.
Crisis must be fully utilised.

— Amitabh Kant (@amitabhk87) August 6, 2025

Trump Tariffs On India

On July 30, Mr Trump announced a 25 per cent tariff on goods exported from India to the United States. Calling India a "friend" of the United States, Mr Trump also warned of a "penalty" for buying military equipment, and energy from Russia.

In a post on Truth Social, his social media platform, Mr Trump wrote, "Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country. Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE - ALL THINGS NOT GOOD!"

The penalty came in the form of an additional 25 per cent tariff announced by Mr Trump on Wednesday evening.

While the initial duty comes into effect from today, August 7, 9:30 am IST, the additional levy will become effective after 21 days.

How 50% Tariff Will Impact India

Higher tariffs mean an increased cost of exports, which will make Indian goods costly in the US market.
Barring a few, most of the Indian products exported to the US will carry 50 per cent or more tariffs. Shrimps, organic chemicals, carpets, apparel (both knitted and woven), textiles, gems and jewellery, steel, aluminium, copper, machinery and mechanical appliances and furniture and bedding will fetch at least 50 per cent tariffs.

Vehicles will be subject to a 26 per cent tariff, and petroleum products will carry a 6.9 per cent tariff.