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US President Donald Trump has imposed an additional 25% tariff on Indian goods, raising total tariffs to 50%, in retaliation for India’s ongoing imports of Russian oil.
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The US is India’s largest export market, accounting for 18% of exports and about 2.2% of GDP.
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India condemned the move as “unfair, unjustified, and unreasonable,” and vowed to take “all necessary actions” to protect its interests.
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Economists warn the tariffs could reduce India’s GDP by 0.6–0.8%, risking economic growth falling below 6%.
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Trade experts believe the tariff could be a negotiating tactic by the Trump administration ahead of upcoming talks.
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India may respond by diversifying its trade partners, especially strengthening ties with Europe and the Middle East (e.g., UAE and Saudi Arabia).
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Labor-intensive industries—like apparel, gems, textiles, auto parts, seafood, and chemicals—are expected to suffer most.
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Industry leaders are alarmed, saying the high tariffs could force factory closures and drive buyers toward China and Vietnam.
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