US President Donald Trump’s decision to double the customs tariff for Indian goods-to raise duties of up to 50 %-has been transferred, and the relations between strategic partners and the threat of growth in the fastest growing major economy in the world.
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The new 25 % tax, which is imposed in response to the purchase of India from Russian oil, at the top of a 25 % previous tariff and now covers major products including clothes, gemstones, jewelry, shoes, sports goods, furniture and chemicals. Sources groups warn that duties may affect more than half of India’s $ 87 billion exports in the United States, exposing small companies and up to 2 million jobs at risk.
New Delhi explores measures to reduce the strike. Officials are talking with exporters on the redemption of shipments to markets such as the United Kingdom, Australia, the United Arab Emirates and Europe, also considering financial support, including low -cost credit and potential preventive materials. Analysts say weaker rupees can help restore some competitiveness of export, but it urges broader economic reforms and a less protectionary trade position to compensate for the effect.
Washington argues that Russian oil imports in India are helping to finance the Moscow war in Ukraine, and it is a demand that India refuses to be hypocrisy of European captain and trade ties with Russia. “Our interest is energy security,” said beginner Foreign Minister Keri Vardhan Singh. “We will continue to buy energy sources from any country that benefits us.”
The tariff high follows five rounds of failed negotiations, as US officials reject duties by 15 % – a rate that applies to other major commercial partners. Both sides blame the political ruling for the collapse. The total bilateral commodity trade reached 129 billion dollars in 2024, with a US trading deficit of $ 45.8 billion.
The market reaction was sharp. Indian stock standards suffered from its worst session in three months, and the rupee decreased to its lowest level in three weeks. Analysts warn that long definitions can undermine India’s appeal as an alternative center for manufacturing for China, even if the diverse export base and strong domestic demand offer some insulation.
Despite the high tensions, India indicated that it remains committed to the American partnership, especially since both countries are involved in strategic concerns about China.
