The United States has officially enacted President Donald Trump’s decision to double tariffs on Indian imports to 50%, escalating trade tensions between the two strategic partners. The new duties apply from August 27, 2025, impacting a wide range of Indian exports including garments, gems and jewelry, footwear, sporting goods, furniture, shrimp, and chemicals.
This move follows Trump’s justification citing India’s continued purchases of Russian crude oil amid ongoing conflicts, a policy the Indian government has condemned as “unfair, unjustified, and unreasonable.”
The tariffs, among the highest imposed by the US on any country, threaten to disrupt millions of jobs linked to Indian exports and unsettle growing economic ties. India is the fifth-largest global economy and a major supplier to the US market, where many American companies have offshore operations.
In response, the Indian government has criticized the tariffs as discriminatory and warned of retaliatory measures. Several Indian sectors stand to be hardest hit, notably labor-intensive industries such as textiles, leather goods, and gems, potentially making shipments commercially unviable.
India is also seeking to diversify its export markets and implement local reforms to mitigate the tariff impact, including tax adjustments and incentives to boost domestic consumption ahead of major festivals.
The US tariffs mark a significant shift in trade policy, reflecting a more protectionist stance and challenging India’s long-established presence in the American market, with ongoing concerns about the broader geopolitical and economic fallout.