President Donald Trump imposed a crushing 50% tariff on Indian goods – the highest in Asia – to punish the country for its purchases of Russian oil.
The new tariffs took effect at 12:01am in Washington on Wednesday, doubling the existing 25% duty on Indian exports. The levies will hit around two-thirds of goods shipped to the U.S. – India’s biggest market – and hurt labour-intensive industries like textiles and jewellery the most. Key exports like electronics and pharmaceuticals are exempt, sparing Apple Inc.’s massive new factory investments in India for now.
The move marks a sharp deterioration in ties for the two nations and an about-turn in Washington’s strategy over the years to court India as a counterweight to China. Trump has slammed India for buying Russian oil, which he said was funding President Vladimir Putin’s war in Ukraine. New Delhi has defended its ties with Russia and has called the U.S. action “unfair, unjustified and unreasonable,” Bloomberg said.
