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The Trump administration’s implementation of reciprocal tariffs in April 2025 has fundamentally altered the trading landscape, initially imposing a 26% tariff on Indian goods entering the American market, escalated to 25% tariff on August 1, 2025, and now dramatically increased to a comprehensive 50% tariff as of the latest executive order on August 6, 2025. This represents one of the most substantial trade policy changes in recent Indo-American economic history, affecting billions of dollars in bilateral trade flows and making India face the highest tariff rates among all US trading partners.