(MENAFN) The United States imposed a steep 50% tariff on Indian imports starting Wednesday, escalating trade tensions between the two nations. This move follows Prime Minister Narendra Modi’s call for greater domestic consumption to drive “self-reliance.”

The US Department of Homeland Security released a draft notice outlining plans to add a further 25% duty on top of the initial 25% tariffs on Indian goods, raising the total levy to 50%. The original 25% tariffs were enacted earlier this month, but the additional penalty was triggered by India’s continued purchase of discounted Russian crude oil, according to the US government.

Trade negotiations appear stalled, with India refusing to open its agricultural sector to US products over concerns about potential harm to local farmers. This impasse marks a significant setback in efforts to strike a broader trade agreement.

As the dispute intensifies, Modi has emphasized domestic economic resilience, urging Indians to prioritize homegrown products.

Bilateral trade between the US and India reached $129 billion in 2024, with Washington facing a $45.7 billion trade deficit, according to data from the Office of the United States Trade Representative.

Indian analysts warn that these tariffs could affect exports valued at up to $50 billion, signaling a sharp escalation in economic friction between two key global players.

MENAFN27082025000045017169ID1109983258