Trump’s 50% Tariffs on India Strain U.S.-India Relations

U.S. President Donald Trump’s decision to double tariffs on Indian imports—raising duties to as high as 50%—took effect on Wednesday, marking a major setback for bilateral relations between the two nations. Once considered strategic partners, Washington and New Delhi now face fresh economic tensions.

The latest punitive measure adds a new 25% tariff on Indian goods due to New Delhi’s purchases of Russian oil, on top of an existing 25% tariff already imposed on a wide range of imports. Economists warn the move could hamper growth in India, the world’s fastest-growing major economy.

According to trade officials, the higher duties will hit garments, gems and jewellery, footwear, sporting goods, furniture, and chemicals, placing India among the countries facing the steepest U.S. tariffs—comparable only to Brazil. The move threatens thousands of exporters and jobs, particularly in Prime Minister Narendra Modi’s home state of Gujarat.

While India’s trade ministry has yet to issue an official response, a government source said New Delhi hopes Washington will reconsider the additional levy. Meanwhile, the government is exploring support measures for affected businesses, including financial assistance and strategies to expand exports of textiles, leather, and jewellery to markets in the U.K., Australia, the UAE, and Europe.

The U.S. has argued that India’s purchase of discounted Russian oil indirectly funds Moscow’s war in Ukraine. New Delhi, however, has dismissed the charge as “double standards”, pointing to ongoing Western trade with Russia.

Reacting to the tariff hike, India’s junior foreign minister Kirti Vardhan Singh said: “We are taking appropriate steps so that it does not harm our economy. Let me assure you that the strength of our economy will carry us through these times. Our priority is energy security, and we will continue to purchase energy from whichever country benefits us.”

According to media and AI sources.