The United States has doubled tariffs on Indian imports, raising total duties to 50 percent. The move adds a new 25 percent penalty on top of the earlier 25 percent “reciprocal” tariff. The higher duties cover a wide range of goods such as garments, gems and jewelry, footwear, sporting items, furniture, and chemicals.
Washington says the decision is a punishment for India’s continued imports of cheap Russian oil, which it claims indirectly supports Moscow’s war in Ukraine. The announcement comes after five rounds of talks between the two countries failed to resolve the issue.
The new tariffs affect more than half of India’s annual exports worth $87 billion to the U.S. This puts thousands of jobs at risk in labor-heavy states like Gujarat, which depend on textiles, jewelry, and chemicals for employment. India is planning steps to soften the blow by offering support to exporters and by looking for new markets in the U.K., Australia, the UAE, and elsewhere.
The timing is tough for India, as exports, the rupee, and stock markets are already under pressure. While the government says the short-term effect can be managed, experts warn that the longer-term impact could be more damaging. Even so, India’s recent upgrade in its sovereign credit rating and ongoing reforms may help attract foreign capital and keep the economy stable.
Beyond trade, this tariff hike marks one of the sharpest setbacks in U.S.–India ties in recent years. Both sides have tried to reassure each other that cooperation in security groups such as the Quad will continue, but trust has clearly taken a hit. The step highlights how fragile the balance is between trade disputes and broader strategic partnership.