The United States has doubled tariffs on many imports from India to 50 percent, as U.S. President Donald Trump followed through on his threat to punish New Delhi for buying discounted Russian oil.

New Delhi

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

Global Tariffs

The United States has imposed a 50 percent tariff on certain Indian goods, citing India's ongoing purchases of Russian oil as the reason for the increase. Indian exporters, particularly in labor-intensive sectors such as textiles, garments, and jewelry, are expected to face significant challenges due to the higher costs. The Indian government, led by Prime Minister Narendra Modi, has stated that energy imports from Russia will continue and has pledged to protect the domestic economy from the impact of the tariffs. Electronics and pharmaceutical exports are exempt from the new tariffs, and India's central bank has announced subsidies to help affected industries. Analysts warn that the tariffs could have severe effects on small and medium-sized businesses, while critics suggest the move may push India closer to Russia and China.

U.S. raises India tariffs to 50 percent over Russian oil purchases

At this shoe factory in Agra in northern India, exporters are bracing for higher costs. Their products now face some of the steepest tariffs anywhere when shipped to the United States. Business owners say the extra charges imposed by the Trump administration will backfire because some of the costs are likely to be passed on to American consumers. This is absolutely a shock. This 50%, 25% tariff and 25% penal tariff, that's definitely a shock to the industry. But we have many shock absorbers also. The US accuses India of helping to fund Russia's war in Ukraine by continuing to buy its oil. India relies on Russia for about a third of its energy imports. Prime Minister Narendra Modi says energy purchases will continue despite the new tariffs. He's pledged to protect India's economy from the impact. My country's small-scale businessmen, farmers, animal keepers, I keep on promising to everyone again and again that for Modi, your well-being is paramount. Electronics and pharmaceutical exports remain exempt from the additional tariffs. Analysts say small and medium-sized companies that employ high numbers of workers on low wages will be hardest hit. But what it does is that it has very severe impact on very few labor-intensive items where the margins are very thin and the competitive or the pure tariff rates are much lower than that of India. So we see much severe impact, let's say on textiles, garments, gems and jewelries. Critics say President Trump's policies could push India closer to Russia and China, each along with Brazil are founding members of the BRICS group of nations. India's central bank has promised subsidies to cushion the impact of the tariffs. But Modi's wider message is clear. India must become more self-reliant.

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U.S. raises India tariffs to 50 percent over Russian oil purchases

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