The impact of Trump’s Indian tariffs is currently sending shockwaves through global markets. President Donald Trump announced a 25% tariff on Indian imports on August 1, 2025. The Indian rupee was weakened to 87.95 against the dollar, which led the Reserve Bank of India to sell an estimated $3 billion to prevent the currency collapse.
Rs fall as Trump India tariffs fall in RBI moves and derailment surges
The rupee-dollar exchange rate actually fell sharply following Trump’s announcement. The RBI dollar intervention was quick and substantial, with two separate market interventions being carried out even at the 87.95 and 87.60 levels.
The dealer at the state-owned bank said:
“RBI could have sold between $2.5 billion and $3 billion. Rupee will win around 20 Paisa. RBI will buy the dollar. There will be two-way interventions.”
India’s export tariffs drive changes in trade policy
India’s export tariff announcement actually represents an escalation from the past 26% rate imposed in April. India is now the top source of US imports, with nearly $90 billion in goods last year. Apple alone exported a $17 billion iPhone from India.
Trump said about the true society:
“India is our friend, but over the years we have been doing relatively little business with them as their tariffs are the highest in the world.
The trend of uncooperative work is accelerated
The impact of Trump India’s tariffs has actually accelerated the trend of decommunity across emerging markets. India allows 18 countries, including Kenya, Sri Lanka and Singapore, to trade for rupee rather than US dollars. RBI dollar intervention and India’s export tariffs indicate a broader shift from the dollar-controlled trading system.
The rupee was recovered to close at 87.48 per dollar after an aggressive response from the central bank. The rupee-dollar volatility is expected to last until the August 1 deadline, and the trend of derailment appears to have gained irreversible momentum as the country seeks alternatives to dollar trading.
