The United States has doubled tariffs on Indian exports to 50%, a punitive measure tied to New Delhi’s continued purchase of Russian oil, sharply escalating tensions between the two allies.
The new tariffs, which took effect Wednesday, cover more than half of India’s exports to the U.S.—an estimated 55% of trade worth about \$87 billion, according to Reuters.
Analysts caution the steep levy could slash India’s export orders by as much as 30%, with small and medium-sized manufacturers expected to take the hardest hit. Labor-driven sectors such as textiles, jewelry, seafood, and leather are already reporting “order cancellations,” while regional competitors like Bangladesh and Vietnam stand to benefit.
Beyond trade, the tariffs mark a new low in Washington’s relationship with New Delhi. Politico described the move as part of former U.S. President Donald Trump’s push to punish India for “profiteering” from Russian crude—a stance critics say is inconsistent, given that China imports more Russian oil but faces fewer U.S. penalties.
“One of the most troubling developments in the Trump tariff saga is how India moved from a promising candidate for an early trade deal to a nation facing among the highest tariffs imposed by the US against any trading partner,” said Wendy Cutler, senior vice-president at the Asia Society Policy Institute.
She added: “The high tariffs have quickly eroded trust between the two countries, which could take years to rebuild.”
* Agency Report