Washington’s punitive 50% tariff undermines trust with New Delhi
Trump’s sweeping tariff measures have drawn sharp criticism for endangering Washington’s strategic partnership with the world’s largest democracy, as his protectionist gambit risks alienating India at a time when the U.S. needs allies. New Delhi has denounced the move as a double standard, noting that America penalizes India for buying Russian oil while Europe continues to import Russian gas without consequence.
Donald Trump’s sweeping 50% tariff on nearly all imports from India took effect Wednesday, sharply escalating trade frictions between the world’s two largest democracies and strategic partners.
The U.S. president announced the unprecedented measure after already imposing a 25% duty on Indian imports and an additional 25% penalty tied to New Delhi’s purchase of Russian oil. The combined effect is one of the harshest tariff regimes ever levied on a U.S. trading partner.
India, one of the fastest-growing economies globally, now faces a severe blow to exports to its largest market. The duties cover a wide spectrum of goods, including garments, gems and jewelry, footwear, furniture, and chemicals, placing tens of thousands of small and medium exporters at risk — particularly in Prime Minister Narendra Modi’s home state of Gujarat.
The move threatens to undercut India’s competitiveness against regional rivals like China and Vietnam, complicating Modi’s ambitions to position the country as a global manufacturing hub.
The shock measure also risks destabilizing Washington’s economic and strategic ties with New Delhi at a time when the U.S. is seeking to counterbalance China’s influence in the Asia-Pacific.
India’s commerce ministry has pledged financial assistance to affected exporters while urging them to diversify toward markets such as China, Latin America, and the Middle East. Officials in New Delhi have described the tariffs as “unfair and unfortunate,” stressing that Russian oil imports are driven by market realities and the energy needs of India’s 1.4 billion people.
India and Russia have meanwhile committed to boosting bilateral trade by 50% to $100 billion over the next five years. Since the 2022 invasion of Ukraine, India has emerged as the largest buyer of Russian crude after European markets pivoted away from Moscow.
New Delhi has also accused Trump of double standards, noting that the European Union continues to import Russian liquefied natural gas while India alone is being penalized.
Washington maintains that India’s oil purchases provide Moscow with critical funds to sustain its war in Ukraine.
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