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