New Delhi: A fresh jolt has hit Indian exporters as US President Donald Trump’s steep 50% tariffs on Indian goods came into force on Wednesday, following the expiry of the August 27 deadline. The move effectively doubles the duty from the earlier 25%, linking it to India’s continued purchase of Russian crude oil.
According to the Department of Homeland Security, the revised duties—calculated as 25% tax plus a 25% “penalty”—will be levied on all consignments entering or withdrawn from US warehouses after 12:01 am EDT (9:31 am IST). The notice specifically names India while leaving out China, despite Beijing importing larger volumes of Russian oil.
Heavy Blow to Key Exports
Nearly half of India’s $87.3 billion exports to the US face the brunt of the new tariffs. Sectors on the hit list include textiles, apparel, gems and jewellery, seafood, leather, steel, aluminium, copper, organic chemicals, and handicrafts.
Some relief remains, however. About 30% of exports worth $27.6 billion, including pharmaceuticals, electronics, and petroleum products, will stay duty-free. Another 4%—mainly auto parts—will attract 25% tariffs.
Modi’s Strong Reply
Reacting sharply from Ahmedabad on Monday, Prime Minister Narendra Modi assured farmers, small traders, and entrepreneurs that his government would not bow under foreign pressure.
“The world today is playing politics over economic interests. But from the land of Gandhi, I promise my small entrepreneurs, shopkeepers, farmers, and cattle-rearers that their interests will always remain paramount for Modi,” he declared, inaugurating development projects in Gujarat.
“No matter how much the pressure increases, we will bear it. My government will never allow harm to small industries or farmers,” he added, striking a defiant note.
With the tariff war escalating, trade analysts warn that Indo-US economic relations may enter a turbulent phase, with ripple effects across India’s export-driven sectors.
