Punitive 50% U.S. tariffs on Indian goods go into effect

Aug. 27 (UPI) — The punitive 50% tariffs levied on imports from India by President Donald Trump due to the continued purchase of Russian oil went into effect Wednesday.

The 50% tariffs on India now in effect are among the highest levied on any country by the United States, which could imperil the two nations’ trading relationship and raise prices for American consumers.

“We will lose [approximately $24.72 billion] as the first jolt to this tariff, across 10 sectors alone,” said Indian National Congress President Mallikarjun Kharge in an X post Wednesday. His message was aimed at Indian Prime Minister Narendra Modi, in which Kharge blamed Modi for not securing a trade deal with the United States.

Kharge also asserted that the tariffs could be a blow to Indian farmers, create “massive job losses” in export-related sectors and impact nearly 1% of India’s GDP.

“India will take all necessary measures to safeguard its national interests and economic security,” the press release from earlier this month concluded.

Trump had already set a baseline tariff on Indian goods through an executive order that ordered that “articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of [25%].”

India, the world’s fifth-largest economy, had already expressed a displeased response over that original duty, stating that it began importing from Russia “because traditional supplies were diverted to Europe after the outbreak of the conflict” between Russia and Ukraine.

“The United States at that time actively encouraged such imports by India for strengthening global energy markets stability,” an Indian government spokesperson said in a press release.

The United States imported $87 billion worth of goods from India in 2024, while only around $42 billion in American goods were exported there. Items such as smartphones, clothing and pharmaceuticals were among the top imports.

Smartphones were exempted from the 50% levies by Trump.

Any effect on stocks in India remains to be seen as markets there are closed Wednesday due to the observance of the Ganesh Chaturthi holiday.