New Delhi: Starting Tuesday midnight (U.S. time), the United States will enforce an additional 25% tariff on Indian exports, pushing the total extra duties on Indian goods to a steep 50% under the Trump administration’s trade regime.
With the hike, India now joins Brazil as the nation facing the highest U.S. import tariffs, ahead of other major economies like Switzerland (39%), Canada (35%), China and South Africa (30% each), and Mexico (25%).
The sudden move comes as a shocker, given that Indian and U.S. teams were in the middle of negotiations for an interim trade deal. Washington has linked the decision to New Delhi’s continued purchase of discounted Russian crude oil, which it says undermines global efforts to pressure Moscow over the Ukraine war.
The escalation has already cast a shadow on bilateral relations: the U.S. delegation cancelled its fifth-round visit to India, stalling progress on trade talks. Experts warn that the tariff surge could have far-reaching consequences for India-U.S. economic ties.