Trade Tensions Soar as US Imposes New Tariffs on India
The US has imposed a 50% tariff on Indian goods, including a recent 25% increase related to India's purchase of Russian oil. The tariffs have strained US-India trade relations, with leaders like Modi and Trump encouraged to engage directly to restore trust and negotiate a resolution.
The United States has implemented additional tariffs on Indian goods, doubling existing levies to 50% due to India's procurement of Russian oil, effective from Wednesday. This increase is set to impact Indian products entering the US market from August 27, 2025, as declared by the Department of Homeland Security (DHS) earlier this week.
Prime Minister Narendra Modi has affirmed his stance on protecting domestic interests, despite heightened international pressure. Exemptions to this tariff hike exist for Indian goods already en route to the US, provided they clear specific customs protocols by September 17, 2025.
Economic experts and industry leaders have expressed concern over the heightened tariffs, which have escalated trade tensions between Washington and New Delhi. Notably, US businesses and investors question the impact on the China+1 strategy and the sustainability of US-India economic collaboration without direct leader-level negotiations.
(With inputs from agencies.)
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