Donald Trump has escalated his trade offensive by imposing 50% tariffs on most U.S. imports from India, punishing the world’s fifth-largest economy for continuing to buy discounted Russian oil.
The tariffs, which came into force just after midnight Wednesday in Washington, are expected to hit Indian exporters hard, disrupt global supply chains, and fuel inflationary pressures worldwide.
From 25% to 50% in a Month
Earlier this month, Washington introduced 25% duties on Indian goods. But Trump swiftly doubled the rate, arguing New Delhi’s Russian oil purchases are indirectly financing Moscow’s war in Ukraine.
Since returning to the White House in January, Trump has imposed sweeping tariff hikes on allies and rivals alike. India now joins Brazil in facing the steepest U.S. duties yet – 50% across most goods.
India Pushes Back
Despite the economic blow, New Delhi has stood firm. Prime Minister Narendra Modi has rejected U.S. pressure to cut ties with Moscow and urged citizens to back local producers:
“All of us should follow the mantra of buying only ‘Made in India’ goods… Pressure on us may increase, but we will bear it,” Modi said.
Billions at Stake
The U.S. imported $87.3 billion worth of Indian goods last year, according to the U.S. Trade Representative. With most now subject to 50% tariffs, analysts warn trade flows could collapse.
Some sectors – including textiles, gems, jewellery, and seafood – are particularly exposed, while rivals in Turkey and Thailand are already snapping up American buyers.
Not all industries are affected: about 30% of Indian exports ($27.6bn), including pharmaceuticals, electronics, refined fuels, and raw drug materials, remain duty-free. Smartphones are also temporarily spared.
Economic Impact
Goldman Sachs’s chief India economist Santanu Sengupta cautioned that if tariffs persist, India’s GDP growth could slip below 6%, down from forecasts of 6.5%.
Meanwhile, Trump has shown little interest in compromise. Writing on Truth Social last month, he said:
“I don’t care what India does with Russia. They can take their dead economies down together, for all I care.”
Geopolitical Fallout
Indian ministers argue the country has been unfairly targeted and warn the tariffs may push New Delhi to deepen ties with Moscow and Beijing, risking further deterioration in U.S.-India relations.
