The US has slapped a 50% tariff on Indian exports, one of the highest in the world, after President Donald Trump moved to punish New Delhi for buying Russian oil. The levy, which doubles the previous 25% duty, took effect Wednesday and covers more than half of India’s shipments to its largest market.
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Industries such as textiles, footwear, and jewelry are expected to suffer most, while electronics and pharmaceuticals are exempt. Indian exporters warn the hike could drive orders to competitors like Vietnam and Bangladesh, threatening jobs.
The move marks a sharp downturn in US-India relations after years of closer ties. India has defended its Russian oil purchases as vital for energy security, calling Washington’s action “unfair and unjustified.” Economists warn the tariffs could shave up to 0.8 percentage points off India’s GDP growth.
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