On August 27, the US 50% tariffs on Indian goods over Russian oil take effect. The US doubled the tariff rate as a direct response to India’s continued purchase of Russian crude.
The policy adds a 25 % penalty on top of an existing 25 % duty. Together, they raise the overall tariff to 50 % on key Indian exports.US 50% tariffs on Indian goods over Russian oil take effect covers goods like garments, gems, jewelry, footwear, furniture, chemicals, and certain textiles.
Indian officials immediately criticized the move. They called it unfair and unjustified. Exporters warn orders may fall by 20–30 %. Industries say this could damage livelihoods across India.
The Indian rupee weakened and stock markets reacted sharply. Sensex and Nifty slumped on the news.
Some sectors do remain exempt. Pharmaceuticals, semiconductors, steel, aluminum, automobiles, and smartphones are spared—for now.
In response, Prime Minister Modi promised tax relief and encouraged “Made in India” pride. He canceled a U.S. trade delegation’s visit and is planning a trip to China.
The U.S. defends the tariffs, saying India’s Russian oil trade helps finance Moscow’s war in Ukraine.Analysts note both countries stand to lose. India risks export collapse, while the U.S. may lose a key supplier.
India is now seeking new markets in Latin America, Africa, Southeast Asia, and the EU. The government also plans to give financial aid to exporters and boost domestic consumption.
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