Washington punished India for trade with Russia: duties increased to 50%
фото: Reuters
US President Donald Trump has decided to impose a 50 percent tariff on Indian goods imported into the United States, a move aimed at pressuring New Delhi over India’s continued purchase of Russian oil, which Trump says the Kremlin is using to finance its war in Ukraine.
This is reported by Bloomberg.
The increased tariffs, which took effect Wednesday night, doubled the previous tariff rate from 25% to 50% and will affect more than 55% of India’s exports to the United States, the agency said. The American market remains the largest sales destination for Indian manufacturers.
The sectors that provide mass employment will be hit hardest: textiles, footwear, jewelry, and toys. At the same time, pharmaceuticals and electronics — including projects by companies like Apple — are temporarily exempt from the new tariffs.
The tariffs are a serious blow to bilateral relations between Washington and New Delhi, which have been developing a strategic partnership in recent years amid China’s growing influence in the region.
India has already called the US actions “unfair and unjustified” and promised not to refuse to import Russian energy.
“The 50 percent duty is a big problem for Indian exporters. In such a situation, buyers in the US market are simply not ready to buy the products,” commented Israr Ahmed, director of Farida Shoes Pvt. Ltd., which supplies more than 60% of its products to the US.
According to estimates by Citigroup analysts, the restrictions imposed could reduce India’s economic growth rate by 0.6–0.8 percentage points.
At the same time, the impact on the overall economy will be limited: domestic consumption generates about 60% of the country’s GDP. In 2024, the US remained the largest external market for Indian exports, reaching $87.4 billion. However, this represents only about 2% of India’s total GDP.
As a reminder, US Treasury Secretary Scott Bessant sharply criticized India for the active increase in imports of Russian oil during the war against Ukraine . According to him, New Delhi not only purchases raw materials at reduced prices, but also resells products from it on international markets, receiving significant profits from this.
As is known, US President Donald Trump has changed his approach to policy towards India in order to put more pressure on Vladimir Putin to stop the war against Ukraine.
As a reminder, at the end of July, US President Donald Trump announced the introduction of new tariffs for India: from August 1, the country will have to pay 25%. He explained that India buys most of its military equipment from Russia and, together with China, is one of the largest consumers of Russian energy.
US President Donald Trump later signed an executive order imposing a 25% tariff on goods from India because of its oil imports from Russia, the first official move by Washington to punish third countries for cooperating with Russian energy.
At the same time , China has increased its imports of Russian oil, seizing the window of opportunity left after Indian demand declined due to US pressure. Thanks to competitive prices, Chinese refineries are increasing supplies of Urals from the Baltic and Black Seas.
In addition, the fourth meeting of the working subgroup of the Russian-Indian intergovernmental commission on military-technical cooperation is scheduled to be held in St. Petersburg next month. At the meeting, Russia and India plan to discuss issues of defense cooperation, military training, and joint military exercises.
It should be noted that Indian companies are not only indirectly financing Russia’s war against Ukraine by purchasing Russian oil, but also supplying components for combat drones used on the front.
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