President Donald Trump has imposed a 50% tariff on most imports from India, escalating trade tensions with one of America’s key partners. The move, effective Wednesday, was justified by the White House as punishment for New Delhi’s continued purchases of discounted Russian crude, which Washington argues indirectly funds the war in Ukraine.
The tariffs, among the steepest applied to any U.S. trading partner, cover the majority of India’s $87 billion in exports to the U.S. While some categories like smartphones remain exempt, vital sectors such as textiles, gems, jewellery, and seafood face crippling costs. Indian exporters warn that production is already slowing in hubs like Tirupur and Surat as their goods become uncompetitive against rivals from China, Vietnam, and Southeast Asia.
Indian leaders have rejected Washington’s demands to halt Russian oil imports. Prime Minister Narendra Modi urged citizens to support domestic manufacturing, while External Affairs Minister S. Jaishankar criticized U.S. pressure as “unjustified and unreasonable,” pointing out that Europe still conducts significant trade with Russia.
Economists caution that the tariffs could trim India’s GDP growth below 6% and weaken the long-term U.S.-India strategic partnership. Despite the standoff, both governments insist trade talks remain open. However, trust between the two democracies may suffer lasting damage, with Indian officials warning that closer cooperation with Russia and China is now more likely.
