Particle.news
Download on the App Store
16 ARTICLES
·
3h ago

U.S. 50% Tariff on Indian Imports Takes Effect, Squeezing Key Export Sectors

Washington is using the levy to pressure India over Russian oil purchases.

Image
Image
The United States’ tariffs on India are coming into effect after five rounds of trade negotiations over several months in which both the parties failed to secure a trade deal
Image

Overview

  • A Department of Homeland Security notice makes the cumulative 50% duty applicable to Indian goods entered for consumption at or after 12:01 a.m. EDT on August 27.
  • Exemptions cover pharmaceuticals, electronics such as chips, mobile phones and tablets, petroleum products, certain metals and autos, as well as in‑transit and humanitarian shipments, leaving many labor‑intensive categories fully exposed.
  • Roughly $48.2 billion of merchandise exports face the higher tariff, with textiles and apparel, shrimp and other seafood, leather, and gems and jewellery reporting halted production, order cancellations and supply‑chain disruptions.
  • India is preparing mitigation steps including a proposed Rs 25,000‑crore Export Promotion Mission, possible GST and SEZ tweaks, export financing support and market diversification, as officials signal no immediate retaliation.
  • The White House frames the step as leverage tied to Russian oil flows and has warned of further actions on countries with digital taxes, while a planned U.S. trade delegation visit to New Delhi has been postponed as negotiations continue.