UNITED STATES DOUBLES TARIFFS ON INDIAN IMPORTS

Current Context : United States President Donald Trump has issued an executive order doubling tariffs on Indian imports to 50 percent due to India’s ongoing purchases of Russian crude oil.

ABOUT THE EXECUTIVE ORDER

• Tariff Hike: Existing 25 percent increased by an additional 25 percent, now total 50 percent.
• Effective Timeline: 21 days from signing date.
• Scope: Applies to all goods entering the United States from India (excluding already shipped items).

Reason Behind the Move

• To penalise India for its continued imports of Russian oil.
• Cited under United States Executive Orders 14024 and 14066 regarding Russia-Ukraine conflict.

India’s Response

• Ministry of External Affairs termed the hike “unfair, unjustified, and unreasonable.”
• Criticised as unilateral and politically motivated.
• Warned of potential long-term impacts on India–United States trade relations.

TRADE AND ECONOMIC IMPACT

• Bilateral Trade:
  • India–United States goods trade is over 190 billion United States dollars (2024)
• Affected Sectors in India:
  • Textiles, Engineering goods, Pharmaceuticals, Information technology hardware
• Economic Consequences:
  • Could increase cost of Indian exports to United States
  • May weaken trade ties between India and United States