US Tariffs on Indian Goods Take Effect, Escalating Trade Tensions

WASHINGTON/NEW DELHI: The United States has officially doubled tariffs on various goods imported from India, reaching levels as high as 50 percent. This action, which went into effect on Wednesday, intensifies the economic friction between the two major democracies and strategic allies.

The increased tariffs include a 25 percent levy in response to India’s procurement of Russian oil, in addition to an existing 25 percent tariff on a wide array of Indian products. Consequently, the total duties can now reach 50 percent on items like clothing, jewelry, shoes, athletic equipment, furniture, and chemical products, placing India among the nations facing the steepest tariffs from the U.S., comparable to Brazil and China.

These new tariffs pose a significant threat to numerous small-scale exporters and could lead to job losses, particularly in Gujarat, the home state of Prime Minister Narendra Modi.

While India’s Commerce Ministry has not yet issued an official statement, a ministry official, choosing to remain anonymous, indicated that exporters impacted by these tariffs will be offered financial support and encouraged to explore market diversification into regions such as China, Latin America, and the Middle East. U.S. Customs and Border Protection has announced a temporary reprieve for Indian goods already en route to the U.S. before the deadline. These shipments will be subject to the original, lower tariff rates if they arrive before 12:01 a.m. EDT (0401 GMT) on September 17.