The United States has announced sweeping 50% tariffs on a wide range of Indian goods, doubling the existing 25% duty, in direct retaliation for India’s continued importation of Russian oil.
The move, confirmed on Wednesday, marks one of the sharpest escalations in trade friction between Washington and New Delhi in recent years.
According to reports, the combined tariffs now cover about 55% of India’s exports to the U.S., an estimated $87 billion in trade.
Experts predict this could cut Indian export orders by as much as 30%, with small and medium-sized manufacturers likely to bear the brunt.
Labor-intensive industries, such as textiles, jewelry, seafood, and leather, are expected to be the hardest hit.
Already, trade associations in India report a wave of order cancellations, warning that competitors in Vietnam and Bangladesh stand ready to seize market share.
Beyond the economic fallout, the move has stirred diplomatic unease. Politico described the tariffs as a “deep rupture” in U.S.–India ties, pointing to President Trump’s strategy of punishing New Delhi for what he calls “profiteering” from discounted Russian oil.
Critics note the apparent double standard, as China continues importing significantly more Russian crude while facing far fewer U.S. restrictions.
Wendy Cutler, senior vice president at the Asia Society Policy Institute, said India’s rapid fall from being a “prime candidate for an early trade deal” to one of America’s most heavily tariffed partners shows the severity of the situation.
“These tariffs have eroded trust at a speed we rarely see in diplomacy.
“Rebuilding that confidence could take years,” she said.
