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

The tariffs, excluding pharmaceuticals and electronics, threaten major sectors like textiles and gems, risking a 70% export collapse and significant job losses, analysts say.

  • On August 27, 2025, the United States began enforcing 50% tariffs on Indian imports, excluding electronics and pharmaceuticals, impacting clothing, auto parts, and jewelry.
  • After rounds of unsuccessful trade talks, the U.S. administration linked tariff increases to India’s energy and defense ties with Moscow, and President Donald Trump said it was due to India purchasing Russian oil.
  • India’s exporters face nearly USD 48 billion in exports at risk, with labor-intensive sectors such as textiles, gems and jewellery, leather goods, automobiles and farmed shrimp hit hardest.
  • In response, Modi’s government announced fiscal measures and tax cuts, while markets and the Indian Rupee weakened, prompting the Reserve Bank of India to sell dollars to stabilize the currency.
  • Analysts warn the tariffs risk unraveling strategic convergence, weakening cooperation on clean energy and imperiling the $500 billion bilateral trade target by 2030, while rivals like Vietnam, Bangladesh, and China could benefit.
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Lean Left

Economic leverage: US import tariffs on Indian products went into effect Wednesday. One reason: India's purchases of Russian oil. The…

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Lean Left

India has saved billions of dollars by increasing imports of Russian cheap oil since the start of a full-scale war against Ukraine, but punitive tariffs of 50% imposed by the United States, which took effect on August 27, quickly offset those gains.

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India News Australia broke the news in on Tuesday, August 19, 2025.
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