More than half of India’s merchandise exports to the United States will now face steep tariffs after President Donald Trump’s administration imposed an additional 25 per cent duty on Indian goods in retaliation for New Delhi’s purchases of Russian oil, the Indian government said Monday.
The new levy doubles the total tariff on Indian exports to 50 per cent — one of the highest rates imposed on any U.S. trading partner. Junior finance minister Pankaj Chaudhary told parliament that about 55 per cent of goods bound for the U.S. will be affected, adding that India’s Department of Commerce is consulting exporters and industry groups to assess the impact.
Prime Minister Narendra Modi, addressing the issue last week, vowed not to compromise on protecting India’s agriculture sector. In a sign of rising tensions, New Delhi has put on hold planned purchases of U.S. weapons and aircraft, according to Indian officials — the first tangible pushback since the tariffs were announced.
Bilateral goods trade between the two countries was valued at roughly $87 billion last fiscal year. The tariff hike marks a sharp downturn in U.S.-India rel