US President Donald Trump imposed a 25% tariff on Indian goods effective August 7, 2025, with an additional 25% set to take effect on August 27, resulting in a total of 50%.
This move aims to penalize India for continuing to purchase Russian oil amid global tensions.
Trade negotiations between the two countries collapsed earlier in the month over disagreements on agricultural and dairy market access.
India has described the tariffs as unfair and unjustified, vowing to safeguard its national interests, particularly in agriculture and dairy sectors.
Prime Minister Narendra Modi emphasized the welfare of Indian farmers as a top priority during recent public addresses.
A US delegation is scheduled to visit India later in August for renewed trade talks.
The tariffs have triggered widespread calls in India to boycott American brands, including McDonald’s, Coca-Cola, Amazon, and Apple.
Supporters of Modi’s Bharatiya Janata Party, along with business executives, are promoting self-reliance and “Made in India” products on social media and through public campaigns.
Groups like Swadeshi Jagran Manch have organized rallies urging consumers to choose local alternatives for items such as soaps, toothpaste, and beverages.
India remains a significant market for US companies, with Meta’s WhatsApp boasting the largest user base there and Domino’s operating more outlets than any other food chain in the country.
Pepsi and Coca-Cola dominate retail shelves, while Apple and Starbucks continue to draw crowds during openings and promotions.
Despite the boycott calls, no immediate sales declines have been reported for these brands.
Business leaders like Manish Chowdhary of Wow Skin Science have posted videos on LinkedIn advocating support for Indian farmers and startups, drawing parallels to South Korea’s global success in food and beauty.
Rahm Shastry of DriveU suggested India develop homegrown alternatives to platforms like Twitter, Google, and WhatsApp, similar to China’s approach.
Indian IT firms such as TCS and Infosys maintain strong global ties, providing software solutions worldwide.
Farmers’ groups in India have opposed US demands for tariff exemptions on American agricultural and dairy products, citing potential harm to local livelihoods.
Protesters at rallies near Delhi have encouraged switching to traditional options like lemonade and buffalo milk over Coca-Cola.
Agriculture supports 70% of rural Indian households, with most farmers operating on small scales, according to UN reports.
Social media graphics from boycott campaigns target foreign food chains, listing Indian substitutes.
The tariffs could raise costs for US consumers on Indian exports like pharmaceuticals, textiles, and steel, given India’s supply of 40% of US generic drugs.
Analysts from S&P indicate the measures may not significantly hinder India’s economic growth, as the country explores alternative markets in the EU, GCC, and Africa.
India is advancing free trade agreements with nations like the UK, UAE, and Australia to mitigate impacts.
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