The U.S. has doubled tariffs on Indian goods to 50%, penalising New Delhi for continuing Russian oil purchases.
President Donald Trump’s move, effective August 27, makes India the most heavily taxed U.S. trading partner in Asia, alongside Brazil.
Washington says the measure is aimed at cutting Moscow’s oil revenue to pressure Russia into a Ukraine ceasefire.
India called the tariffs “unfair” and stressed that Russian imports are vital for its energy security.
The hike threatens key export sectors, including textiles, leather, chemicals, jewellery, and seafood.
The Confederation of Indian Textile Industry warned it could severely weaken competitiveness in the U.S., India’s largest market for textiles and apparel.
Pharma exports, supplying 35% of U.S. generic drug needs, are also at risk—potentially raising U.S. healthcare costs.
Economists estimate the impact on India’s GDP at 60 basis points, or $23 billion.
Prime Minister Narendra Modi vowed not to compromise on farmers’ and fishermen’s interests, while opposition leaders united in calling the tariff “economic blackmail.”
Industry players are rushing shipments before the deadline and negotiating with U.S. buyers.
Despite ongoing talks for a bilateral trade agreement, India has ruled out concessions on agriculture, dairy, and GM products.
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