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Trump’s 50% Tariffs on India for Buying Russian Oil Take Effect

The tariffs target $48.2 billion of Indian exports and risk significant job losses in key sectors like textiles and gems, as India refuses to end Russian oil purchases, officials said.

  • At 12:01 am EDT on August 27, 2025, U.S. authorities applied steep tariffs on Indian goods, raising combined duties to 50% for products entered after that time.
  • The move followed five rounds of failed talks and a cancelled U.S. delegation visit, with the U.S. attributing the tariffs to India’s increased Russian oil purchases.
  • Exporter groups warn nearly 55 percent of India's $87 billion merchandise exports to the U.S. face disruption, hitting labour-intensive sectors including textiles, gems and jewellery, leather goods, food and automobiles.
  • The Indian government has begun planning local reforms to boost consumption while the Trade Ministry and Finance Ministry discuss financial incentives and promised support for exporters ahead of a government council meeting next month.
  • The stand-off has raised questions about the India–U.S. relationship, while private sector analysts warn a sustained 50 percent tariff could weigh on India's economy, prompting efforts to diversify trade with the European Union.
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India News Australia broke the news in on Tuesday, August 19, 2025.
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