ndian-made goods starting Wednesday. This move comes after India increased its imports of Russian oil, despite global pressure to cut ties with Moscow.
With the new tariffs, some Indian products will now face up to 50% total duty — some of the highest rates ever imposed by the U.S.
The new charges will apply to all Indian goods entering the U.S. from 12:01 a.m. EDT (9:31 a.m. IST) on Wednesday. Only a few items will be exempt, including humanitarian aid, goods already in transit with proper paperwork, and items under specific trade programs.
Why Is This Happening?
The U.S. says the new tariffs are a response to India’s indirect support of Russia during its conflict with Ukraine. India has continued buying discounted oil from Russia — something the U.S. believes undermines international efforts against Russia.
India’s government has not made any official statement yet, but a senior official from the Commerce Ministry said there is little hope of stopping the tariffs. The official added that the government plans to support affected exporters with financial help and push them to explore new markets in China, Latin America, and the Middle East.
How Are Markets Reacting?
The Indian rupee dropped by 0.2% to 87.75 against the U.S. dollar.
Major stock indexes (Sensex and Nifty) also fell by around 0.8%.
What Does This Mean for Exporters?
Indian exporters are worried. Industry groups estimate that 55% of India’s $87 billion in exports to the U.S. could be hit by the tariffs. Affected sectors include textiles, food processing, leather, marine goods, and engineering products.
“U.S. customers have already stopped placing new orders,” said Pankaj Chadha, head of the Engineering Export Promotion Council. He warned that exports could drop by 20–30% starting in September.
Though the government promises support like cheaper loans and export assistance, many exporters believe it will be hard to find new buyers quickly or shift products to the local market.
Could This Hurt the Indian Economy?
Yes. Experts warn the high tariffs could reduce India’s economic growth by up to 0.8 percentage points this year and next. Indian companies may also see falling profits, even if the government tries to soften the impact with tax cuts.
India Stands Firm on Oil
Foreign Minister S. Jaishankar said last week that trade talks with the U.S. are ongoing, and criticized Washington for not applying similar pressure on countries like China and members of the European Union.
So far, India has not issued any order to reduce oil imports from Russia. Refinery officials say they will continue to buy Russian oil as long as it makes economic sense.
