Synopsis: US President Donald Trump’s initial 25% tariff on Indian imports has now doubled to 50% following an additional levy tied to India’s continued Russian oil purchases. These duties are now among the highest the US has ever imposed on a single country.
Trump Slaps 50% Tariffs on India: Trade Tensions Reach Boiling Point
In a dramatic escalation of trade tensions, US President Donald Trump’s administration has begun enforcing a 25% tariff on Indian imports, with an additional 25% duty set to take effect from August 27—bringing the total to a staggering 50%. These are among the highest tariffs ever imposed by the US on any single nation.
The first tranche, part of Trump’s "Reciprocal Tariff, Adjusted" framework, came into effect Thursday, following an executive order that listed revised duty rates for nearly 70 countries. While countries like Japan were hit with a 15% duty and the UK with 10%, India’s 50% tariff rate places it at the top of the list.
The second tranche of tariffs is being justified by Washington as a response to India’s continued energy ties with Russia—specifically its sustained purchase of Russian oil despite US objections.
Trump stated that while some trading partners have shown a willingness to cooperate on trade and security matters, others, like India, have "failed to engage adequately." This signals growing dissatisfaction in Washington over India’s balancing act between the West and Russia.
Effective from August 27, the cumulative 50% tariff will significantly affect Indian exports, potentially impacting sectors like textiles, pharmaceuticals, and consumer electronics.
India, which had earlier seen a boost in exports due to exemptions on certain goods, now faces uncertainty as the trade relationship with its largest export partner becomes increasingly strained. The Indian government is expected to raise the issue at the upcoming G20 and WTO forums.
Disclaimer: This article is for informational purposes only. It does not constitute legal, financial, or trade advice. Readers are advised to consult official sources and trade experts for in-depth analysis.
