US Doubles Tariffs on Indian Goods to 50% Over Russian Oil Purchases

AFP/APP

Washington: The United States on Wednesday doubled tariffs on a wide range of Indian goods to 50 percent, as President Donald Trump moved to penalize New Delhi for continuing to import Russian oil a key source of revenue for Moscow’s war in Ukraine.

The move, one of the sharpest trade actions since Trump’s return to office in January, adds strain to US-India ties and could push New Delhi to improve relations with Beijing. While Washington has imposed new duties on both allies and rivals in recent months, the 50-percent rate is among the highest faced by any US trading partner.

Exemptions and Investigations

Certain sensitive sectors including pharmaceuticals, computer chips, and smartphones were exempted from the sweeping duties. However, the Trump administration has launched fresh investigations into these and other industries, with the possibility of further levies in the future. Heavily protected sectors such as steel, aluminum, and automobiles are also spared from the across-the-board hikes.

The United States was India’s top export destination in 2024, with shipments worth $87.3 billion. Analysts warn that the new tariffs, which some liken to a trade embargo, could devastate small and medium-sized exporters. Already, orders for textiles, seafood, and jewelry have been cancelled, with competitors such as Bangladesh and Vietnam expected to benefit.

India Pushes Back

New Delhi has denounced the move as “unfair, unjustified and unreasonable.” Prime Minister Narendra Modi has pledged to shield citizens from the fallout, promising tax relief in his annual Independence Day address and reiterating his call for economic self-reliance.

India’s foreign ministry previously defended its oil purchases, noting that Russian imports surged only after Europe redirected supplies following Moscow’s invasion of Ukraine — a shift Washington had initially encouraged to stabilize global energy markets. Russian oil accounted for about 36 percent of India’s total crude imports in 2024, saving billions in costs and keeping domestic fuel prices steady.

Eroding Trust

Despite these arguments, Trump pressed ahead with the tariff hike. His trade adviser Peter Navarro accused India of ignoring “its role in the bloodshed” in Ukraine and “cozying up to Xi Jinping,” a reference to China’s president.

Trade experts warn that the new measures could cause long-term damage to relations. Wendy Cutler, senior vice president at the Asia Society Policy Institute and a former US trade negotiator, said: “India moved from a promising candidate for an early trade deal to a nation facing among the highest tariffs imposed by the US. The high tariffs have quickly eroded trust between the two countries, which could take years to rebuild.”

Wider Tariff Campaign

Tariffs have become a central tool in Trump’s foreign and trade policy. Earlier this month, he raised duties on dozens of economies from the European Union to Indonesia citing unfair practices and US trade deficits. Brazil was also hit with 50 percent tariffs on many goods amid tensions over the trial of its former president Jair Bolsonaro, though exemptions were applied in key sectors.

The latest escalation with India underscores how Washington’s use of tariffs has expanded beyond trade disputes, becoming a broader instrument of foreign policy leverage in conflicts ranging from Ukraine to domestic politics abroad.