Trump Imposes 50% Duties On Indian Goods Over Russian Oil Purchases

• 27.08.2025, 9:37

The new tariffs went into effect on Wednesday night.

US President Donald Trump has signed a decision to impose 50% duties on imports of Indian goods. The move is aimed at punishing New Delhi for continuing to buy Russian oil, which Trump says is funding Russia's war against Ukraine.

It was reported by Bloomberg.

As Bloomberg reports, the new tariffs went into effect on Wednesday night, doubling the existing 25% levies. They will affect more than 55% of India's exports to the U.S., the largest market for the country.

Sectors that provide mass employment will be hit hardest: textiles, footwear, jewelry and toys.

Pharmaceuticals and electronics, including Apple's major investments in India, are so far exempt from the restrictions.

The White House decision sharply worsens relations between Washington and New Delhi, which in recent years have developed a partnership in opposition to China. India called the U.S. action "unfair and unjustified" and vowed to continue buying Russian oil.

"It will have a very big impact on Indian exporters as the 50% tariffs are not suitable for customers," said Israr Ahmed, director of Farida Shoes Pvt. Ltd. Ltd. which ships more than 60% of its products to the U.S.

According to Citigroup, the new levies could reduce India's economic growth by 0.6-0.8 percentage points.

The impact, however, will be limited because of the economy's focus on domestic demand - private consumption forms about 60% of the country's GDP.

The U.S. is the largest export market for India ($87.4 billion in 2024), but it is only about 2% of the nation's GDP.