The United States doubled tariffs on Indian imports to 50%, effective early Wednesday, aiming to pressure buyers of Russian fossil fuels. The tariff increase will sharply raise duties on garments, gems and jewelry, footwear, sporting goods, furniture, shrimp and chemicals, while exemptions remain for pharmaceuticals and computer chips. A Global Trade Research Initiative report estimated $60.2 billion of Indian exports will be affected and warned labor-intensive sectors could face a 70% collapse in exports. India exported $86.5 billion to the US in 2024. India plans tax cuts and emphasizes self-reliance while continuing to seek the best deals for oil.
The deadline for new US tariffs on India has passed early Wednesday, doubling the total levies on goods from the South Asian economic giant to 50%. US President Donald Trump had earlier announced the increase to pressure buyers of Russian fossil fuels, a major source of revenue for Moscow. Trump's trade adviser, Peter Navarro, said last week that "India doesn't appear to want to recognize its role in the bloodshed," in reference to Russia's war in Ukraine.
The US is India's largest export market, with $86.5 billion (75 billion) in total exports in 2024, and the 50% tariff is among the highest that US trading partners face. The extra tariffs are set to spike duties for products like garments, gems and jewelry, footwear, sporting goods, furniture, shrimp and chemicals. However, tariff exemptions continue to be in place for sectors like pharmaceuticals and computer chips, which could be hit separately.
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