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2h ago

U.S. Tariffs on Indian Goods Double to 50% as Trump Penalizes Russian Oil Purchases

The move spares electronics and pharmaceuticals for now, leaving labor‑intensive exporters facing steep losses.

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A worker pushes a cart of packaged frozen shrimps inside a cold storage unit at a shrimp factory situated on the outskirts of Vishakhapatnam, India, April 10, 2025.
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Overview

  • Levies took effect at 12:01 a.m. EDT on Aug. 27, with a CBP notice granting a transit waiver that lets pre‑loaded shipments enter at earlier rates until Sept. 17.
  • The White House frames the action as punishment for India’s discounted Russian oil buying, with senior officials saying the pressure is intended to curb funding for Moscow’s war.
  • Exporter groups estimate exposure of nearly 55% of India’s $87 billion in U.S.-bound goods, hitting textiles, gems and jewellery, footwear, leather and shrimp as rivals like Vietnam and Bangladesh gain share.
  • Electronics, including many smartphones, and pharmaceuticals are excluded for now, and sectoral tariffs such as steel and aluminum do not stack beyond 50%, preserving some supply‑chain nodes.
  • India is activating relief including credit support, a proposed ₹25,000‑crore Export Promotion Mission and GST tweaks, while economists warn of a 0.6–0.8 percentage‑point drag on growth and markets show strain.