India takes hit of Trump’s fifty per cent new tariffs on imports

2025-08-27 08:00:28

(MENAFN) US President Donald Trump’s 50% tariffs on Indian imports took effect Wednesday, coinciding with Prime Minister Narendra Modi’s push for greater domestic consumption to advance India’s goal of “self-reliance.”

The US Department of Homeland Security issued a draft notice outlining plans to levy an additional 25% import duty on Indian goods, bringing the total US tariff to 50%. Earlier this month, a 25% tariff had already been applied, but Trump added the extra 25% as a penalty for India’s purchase of discounted Russian crude oil.

Trade negotiations between the two countries reportedly stalled after India resisted opening its agricultural market to US products, citing potential harm to local farmers.

Amid rising trade tensions, Modi has emphasized the importance of self-reliance and encouraged Indians to buy more domestic products.

US-India trade reached $129 billion in 2024, with the United States running a $45.7 billion trade deficit, according to the Office of the United States Trade Representative. Indian analysts estimate that the tariffs could affect up to \$50 billion worth of exports.

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