The United States implemented combined tariffs of 50% on a range of Indian products after an initial 25% levy and an additional 25% tied to India's Russian oil purchases. The Indian government estimates $48.2 billion of exports will be affected. Labor-intensive sectors such as textiles, gems and jewelry, leather goods, food and automobiles face the greatest impact. Some sectors, including pharmaceuticals and electronic goods, received temporary exemptions. Exporters warn that new duties could render U.S. shipments commercially unviable, cause job losses, and slow economic growth, risking a broader slowdown for one of the fastest-growing major economies.
Steep U.S. tariffs on a range of Indian products took effect Wednesday, threatening a steep blow to India's overseas trade in its largest export market. President Donald Trump had initially announced a 25% tariff on Indian goods. But earlier this month he signed an executive order imposing an additional 25% tariff due to India's purchases of Russian oil, bringing the combined tariffs imposed by the U.S. on its ally to 50%.
Estimates by New Delhi-based think tank Global Trade Research Initiative suggest labor-intensive sectors such as textiles, gems and jewelry, leather goods, food and automobiles will be hit hardest. "The new tariff regime is a strategic shock that threatens to wipe out India's long-established presence in the U.S., causing unemployment in export-driven hubs and weakening its role in the industrial value chain," said Ajay Srivastava, the think tank's founder and a former Indian trade official.
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