Wednesday 27 / August / 2025
New Delhi: 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.
India's envoy to Russia, Vinay Kumar, told Russia's state-run TASS news agency over the weekend that New Delhi will continue buying oil from wherever it gets the "best deal" and will take measures to protect its "national interest."
Indian Prime Minister Narendra Modi has vowed to cut taxes amid the US tariff setback. He has also renewed calls for India — the world's fifth-largest economy — to become "self-reliant."
How do the US tariffs affect India?
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.
According to a report published by the Global Trade Research Initiative (GTRI), the tariffs will affect Indian exports worth $60.2 billion (€52 billion).
The report added that India's labor-intensive sectors are bracing for a 70% collapse in exports.
The US Department of Homeland Security had said the increased tariffs would be effective on the Indian products that are "entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 27, 2025 (20:01 UTC on August 26, 2025)."
How has India reacted so far?
The Indian government has deemed Washington's move as "unfair, unjustified, and unreasonable."
Earlier, the Foreign Ministry in New Delhi had said that India began importing oil from Russia because traditional supplies were diverted to Europe due to Russia's war in Ukraine.
The ministry said that the US, at the time, actively encouraged such imports to bolster stability in the world energy market.
Trump's tariffs also sparked calls in India to boycott US goods, and gave New Delhi a renewed spur to improve its ties with China.
India and China have agreed to step up trade flows. Modi is also set to travel to China later this week for the Shanghai Cooperation Organisation (SCO) summit, marking the Indian leader's first visit to the country in seven years.
