US imposes 50% tariffs on Indian exports over Russian oil purchases

The new duties double the previous 25% tariffs on Indian exports and apply to most sectors except electronics and pharmaceuticals

A 50% US tariff on certain Indian exports took effect Wednesday, among the highest globally, in a punitive move against New Delhi’s purchase of Russian oil, threatening long-standing trade ties between the two countries.

The new duties, which came into force at 12:01 a.m. Washington time (07:01 a.m. Makkah time), double the previous 25% tariffs on Indian exports. They apply to most sectors except electronics and pharmaceuticals, in order to safeguard investments by companies such as Apple and major drug manufacturers.

Economists warned the move could cut Indian exports to their largest market, undermine competitiveness against China and Vietnam, and fuel unemployment in key manufacturing hubs, Bloomberg reported.

A US trade delegation scheduled to visit India from Aug. 25–29 for the sixth round of trade talks postponed its trip, raising further doubts about whether the two sides can conclude a trade deal by fall as planned.

In response to the tensions, India sought to deepen ties with BRICS nations and aims to boost annual trade with Russia by 50% to $100 billion within five years. Meanwhile, Beijing and New Delhi have worked to mend relations strained by deadly border clashes in 2020.

US President Donald Trump sharply criticized India for buying Russian oil, saying it funds Moscow’s war in Ukraine. New Delhi, however, defended its relations with Russia, calling the US measures unfair, unjustified, and illogical.