US tariffs on Indian goods double to 50%

TDT | Washington

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US tariffs of 50% took effect yesterday on many Indian products, doubling an existing duty as President Donald Trump sought to punish New Delhi for buying Russian oil.

India has criticized the levies as "unfair, unjustified and unreasonable," with its export body calling on Wednesday for government intervention to assuage fears of heavy job cuts.

Trump has raised pressure on India over the energy transactions, a key source of revenue for Moscow's war in Ukraine, as part of a campaign to end the conflict.

The latest salvo strains US-India ties, giving New Delhi fresh incentive to improve relations with Beijing.

But US Treasury Secretary Scott Bessent told Fox Business on Wednesday that Trump had good ties with Indian Prime Minister Narendra Modi.

"I think at the end of the day, we will come together," he said.

While Trump has slapped fresh duties on allies and competitors alike since returning to the presidency in January, this 50% level is among the highest that US trading partners face.

Crucially, however, exemptions remain for sectors that could be hit with separate levies -- such as pharmaceuticals, computer chips and smartphones.

Industries that have already been singled out, such as steel, aluminum and automobiles, are similarly spared these countrywide duties.

The United States was India's top export destination in 2024, with shipments worth $87.3 billion.

But analysts have cautioned that a 50% duty is akin to a trade embargo and is likely to harm smaller firms.