The United States has dramatically increased tariffs on Indian goods to 50%, one of the highest rates globally, in a move led by President Donald Trump as a response to India's ongoing purchases of Russian oil amid geopolitical tensions.
This steep tariff hike is poised to deliver a substantial blow to vital Indian industries, particularly textiles, gems, seafood, and apparel, threatening approximately $60 billion in exports and significantly impacting the Indian economy.
As the tariffs took effect, Indian stock markets reacted negatively, with key benchmarks experiencing declines, signaling growing concerns over the economic fallout.
In a bid to counter the adverse effects, Prime Minister Narendra Modi is urging citizens to support locally-made products, while exporters are actively seeking new trade partnerships with nations like China, Russia, and Brazil.
The punitive tariffs threaten to destabilize U.S.-India relations, complicating a historically significant alliance that was intended to serve as a counterbalance to China’s rise.
Experts warn that this tariff strategy may lead to increased inflation in the U.S. and encourage emerging economies to unite more closely around India, potentially reshaping global economic landscapes.
30
