Trump's 50% Tariff Hike on India Goes Into Effect

President Trump's decision to double tariffs on Indian imports to rates as high as 50% took effect on Wednesday, putting a major strain on US-India relations at a time when the two nations have been deepening strategic ties. The move, in part a response to India's continued purchases of Russian oil, piles an additional 25% tariff on a range of goods already subject to US duties, affecting sectors from textiles and jewelry to chemicals, furniture, and sporting goods, reports Reuters.

• The new tariffs are among the steepest imposed by the US, matching levels seen on imports from Brazil and China. The Indian government estimates the tariffs will affect close to $50 billion in exports, reports the AP.

• Exporters and analysts warn that the duties threaten Indian livelihoods and may undermine growth in what's currently the world's fastest-growing major economy. "Up to 2 million jobs are at risk in the near term," Sujan Hajra, chief economist for the Anand Rathi Group, tells Reuters.
• The impact was immediately felt in Indian markets—stock benchmarks saw their worst day in months, and the rupee extended its recent slide.
• "This is an absolute shock," Puran Dawar, a leather footwear exporter in the Indian city of Agra, concedes to the AP, adding that the US should realize the tariffs will only serve to hurt American consumers. Despite the hit, some Indian officials and economists see a possible silver lining if India uses the disruption as a catalyst to open its markets further and diversify its export destinations. The government is preparing measures to support affected exporters, including with financial aid and encouragement to seek new markets in China, Latin America, and the Middle East.
• Talks between the two countries failed to produce a compromise, with each side blaming political miscalculations. While the US points to India's oil purchases funding Russia's war in Ukraine, India counters that Western nations maintain significant trade with Moscow as well.
• Meanwhile, the New York Times notes that the tariffs war has given Indian Prime Minister Narendra Modi "a difficult political card to play" at home. "No matter how much pressure is put on us, India will prevail," he assured citizens in a Monday speech.