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US stuns India with massive tariff as ties hit new low

23 1
08.08.2025

• Trump slaps another 25pc on New Delhi, taking rate to a whopping 50pc
• New import tax to take effect in three weeks, threatens exports worth $87bn; textile, footwear, gems and jewellery sectors hit
• India rejects tariffs as ‘unjustified’, vows to protect national interests; Rahul Gandhi calls it ‘economic blackmail’

WASHINGTON: US President Donald Trump on Wednesday imposed an additional 25 per cent tariff on Indian goods, citing New Delhi’s continued imports of Russian oil in a move that sharply escalated tensions between the two nations after trade talks reached a deadlock.

The new import tax, set to come into place in three weeks, will raise duties on some Indian exports to as high as 50pc — among the highest levied on any US trading partner.

Trump’s executive order imposing the extra tariff did not mention China, which also imports Russian oil. A White House official had no immediate comment on whether an additional order covering those purchases would be forthcoming.

Analysts said Mr Trump’s move marks the most serious downturn in US-India relations since his return to office in January. The tariffs threaten to disrupt India’s access to its largest export market, where shipments totalled nearly $87 billion in 2024, hitting sectors like textiles, footwear, gems and jewellery.

It also marks a shift from the warm ties seen during Mr Trump and Indian Prime Minister Narendra Modi’s February meeting, they said, pointing out Mr Trump’s recent

© Dawn Business