Washington (TDI): US President Donald Trump’s decision to double tariffs on Indian imports, pushing duties as high as 50%, came into force on Wednesday, adding new strain to relations between the two democracies.
The higher duties combine a 25% penalty linked to India’s purchases of Russian oil with the administration’s earlier 25% tariff on a wide range of Indian products. Goods such as garments, footwear, gems and jewelry, sporting equipment, furniture and chemicals now face some of the steepest tariffs levied by Washington, on par with those applied to Brazil and China.
The move is expected to hurt thousands of small exporters and jeopardize jobs, particularly in Prime Minister Narendra Modi’s home state of Gujarat, a hub for textiles and gems.
According to a US Customs and Border Protection notice, Indian goods already en route to the United States before the midnight deadline will be exempt from the higher tariffs if they arrive before September 17. Steel, aluminum, passenger vehicles, copper and other items covered under separate Section 232 national security tariffs remain outside the scope of Wednesday’s measures.
Read More: Trump’s Tariffs Fuel Calls to Boycott US Goods in India
While India applies an average tariff of around 7.5% on US goods, Washington points to much higher barriers in some categories, including duties up to 100% on autos and an average of 39% on American farm exports.
The tariff increase follows five unsuccessful rounds of negotiations. Indian officials had hoped duties could be capped at 15%, similar to rates applied to products from US allies such as Japan, South Korea and the European Union. But US officials gave no indication of compromise. Asked on Tuesday whether the tariffs would go into effect, White House trade adviser Peter Navarro replied simply, “Yeah.”
Read More: India in Trump’s Crosshairs: President Threatens to Raise Tariffs Further
Trade analysts say nearly 55% of India’s $87 billion in exports to the US could be affected, potentially benefiting rivals like Vietnam, Bangladesh and China. The prolonged standoff may also weaken India’s position as an emerging alternative to China in electronics and smartphone manufacturing.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
