US Imposes 25% Additional Tariff on Indian Products Due to Russian Oil Purchases, Creating Export Concerns
The US has implemented a 25% additional tariff on Indian goods due to ties with Russian oil, leading to concerns about a decline in the rupee and potential impacts on exports.
Indian exporters are preparing for significant disruptions following Washington’s confirmation of a 25% tariff on all goods originating from India, set to take effect on Wednesday, heightening trade tensions with Asia’s third-largest economy.
The US Department of Homeland Security has announced that the new duties will be applicable to all Indian goods entering the country for consumption starting at 12:01 a.m. EDT on Wednesday (9:31 p.m. IST). The action comes after President Donald Trump’s recent decision to impose penalties on India for its heightened acquisitions of Russian oil, which Washington contends indirectly aids Moscow’s military efforts in Ukraine.
The recent measures will see US duties on Indian goods increase to as much as 50%, marking some of the highest tariffs ever imposed by Washington. Exceptions encompass in-transit shipments that have the necessary certification, humanitarian aid, and items that fall under reciprocal trade agreements.
The Indian rupee declined by 0.17% to 87.73 per US dollar in early trading, contrasting with the upward movement of other currencies against the greenback.
India’s Commerce Ministry has not made a public statement yet, but an official informed reporters that the government has “no hope for any immediate relief or delay” regarding the tariffs. The official stated that exporters will obtain financial support and be motivated to explore new markets, with China, Latin America, and the Middle East recognized as key regions of focus.
Prime Minister Narendra Modi, in the meantime, pledged to uphold the interests of Indian farmers “even if there is a heavy price to pay.” Modi is preparing for his first visit to China in seven years later this month, indicating a careful approach to outreach as relations with Washington deteriorate.
