A staggering 50 per cent US tariffs took effect on many Indian products on Wednesday, doubling an existing 25 per cent duty as American President Donald Trump sought to punish New Delhi for buying Russian oil, escalating tensions between the world’s two largest democracies and strategic partners.
Trump has raised pressure on India over the energy purchases, as part of the US campaign to end the conflict in Ukraine. He imposed a punitive 25 per cent tariff due to India’s purchases of Russian oil, over a prior 25 per cent US duty on many products from India.
It takes total duties as high as 50 per cent for goods such as garments, gems and jewellery, footwear, sporting goods, furniture and chemicals – among the highest imposed by the U.S. and on par with Brazil and China.
But tariff exemptions remain for sectors that could be hit separately, like pharmaceuticals and computer chips.
As the punitive measure kicked in, Trump took to his Truth Social platform and posted a picture of himself with an oil barrel. The image read, “America first” and “America is back”.
The Indian government estimates the tariffs will impact $48.2 billion worth of exports. Officials have warned the new duties could make shipments to the U.S. commercially unviable, triggering job losses and slower economic growth.