The United States on Wednesday imposed tariffs of up to 50% on most goods arriving from India, after a Department of Homeland Security notice added a fresh 25-percentage-point levy to duties that took effect earlier this month. The measure, effective from 00:01 a.m. Eastern time on 27 August, is framed by the White House as a sanction for New Delhi’s continued purchases of discounted Russian crude. The higher rate applies to a wide range of labour-intensive exports—including garments, gems and jewellery, shrimp, furniture and chemicals—while sectors such as pharmaceuticals, semiconductors, smartphones, steel, aluminium and passenger vehicles remain exempt. The border-agency notice provides a three-week waiver for Indian cargo that was already at sea before the deadline. The United States was India’s largest goods market last year, taking in about US$87 billion of shipments. New Delhi-based think tank Global Trade Research Initiative estimates roughly two-thirds of those exports now face the full 50% duty, a change that could cut overall shipments to the U.S. by 43% to US$49.6 billion and endanger up to two million jobs in textiles, jewellery and other small-business sectors. Exporter groups report cancelled orders and are urging domestic support measures, while economists put the potential annual hit to India’s GDP at up to US$36 billion. The tariff escalation follows five rounds of unsuccessful trade negotiations between Washington and New Delhi. U.S. officials argue that India’s oil imports help finance Moscow’s war in Ukraine; Indian ministers call the levies unfair and promise to explore alternative markets. Modi has launched a “buy India-made” campaign and is due to travel to Japan this week, underscoring the geopolitical stakes as the world’s two largest democracies reassess a partnership long viewed as a counterweight to China.
President Donald Trump’s move to penalize India for buying oil from Russia will increase economic risks for the South Asian nation and test its longstanding ties with Moscow. Here's what to know. https://t.co/ll1X716ckl
💲Economía | Aranceles de EU a India se duplican al 50% por compras de petróleo ruso 🇺🇸🇮🇳 https://t.co/uIUN3ejysR
India July Econ Report: US tariffs have limited direct impact on exports, but secondary effects may challenge economy. India-US trade talks critical.