By Staff, Agencies

US President Donald Trump’s 50% tariffs on most imports from India took effect on Wednesday, marking a sharp escalation in trade tensions between Washington and New Delhi.

The US had first levied 25% tariffs on India in early August after the two sides failed to reach a trade deal. Trump later announced an additional 25% tariff, effective August 27, in response to India’s continued purchases of Russian oil.

Negotiations collapsed earlier this month as India resisted opening sensitive sectors such as agriculture and dairy to American companies.

The new tariffs, analysts warn, will make many Indian products prohibitively expensive in the US, one of the few countries where New Delhi enjoys a trade surplus. In the 2024–25 fiscal year, bilateral trade reached $131.8 billion, with India holding a surplus of $41.18 billion.

Sectors most affected include gems and jewelry, seafood, and textiles, while pharmaceuticals, electronics, refined fuels and raw drug materials—nearly 30% of Indian exports to the US—remain exempt.

Indian Prime Minister Narendra Modi urged resilience in the face of mounting pressure, declaring on Tuesday: “Economic selfishness is on the rise globally… All of us should follow the mantra of buying only ‘Made in India’ goods.” Modi also called on shopkeepers to prominently promote domestic products.

Despite acknowledging the difficulties posed by the tariffs, Modi said India is prepared to endure the impact. To cushion the blow, New Delhi plans to cut consumption taxes by October during Diwali, the country’s peak shopping season.

Indian Foreign Minister S. Jaishankar voiced frustration last week, saying New Delhi was “perplexed” by the US logic of imposing secondary sanctions over its Russian oil imports.

Trump has imposed similar 50% tariffs on Brazil as well, broadening his aggressive trade policy beyond India.