India Braces for 50% US Tariffs as Ties with Trump Sour

New Delhi  — The United States has imposed a 50% tariff on Indian goods, the steepest in Asia, as President Donald Trump moves to penalize New Delhi for continuing oil imports from Russia.

The new duties, which double the 25% levies introduced earlier this month, threaten India’s exports to its largest market and risk weakening economic ties between the two countries. Analysts warn the move could cost jobs in India’s export hubs and undermine Prime Minister Narendra Modi’s push to make the country a manufacturing powerhouse.

While sectors such as electronics and pharmaceuticals are spared, labour-intensive industries like textiles, footwear, and jewellery are expected to take the biggest hit. The Indian rupee has already slid to its weakest level this year, and stock markets have seen $5 billion in foreign outflows since July.

New Delhi has vowed to keep buying Russian oil “as long as it is financially viable,” defying Trump’s criticism. The tariffs come as India seeks closer trade ties with BRICS partners, with Modi due to meet China’s Xi Jinping next week.