The U.S. announced 50% tariffs on Indian imports effective

Background:
In August 2025, the U.S. government announced a sharp increase in tariffs on Indian goods, doubling duties to as high as 50%. This move targeted sectors such as textiles, gems, jewellery, chemicals, leather, and furniture.
Main Reason Cited:
The official justification was India’s ongoing energy trade with Russia, particularly oil imports, which the U.S. viewed as undermining its sanctions and foreign policy stance against Moscow.
Political Context:
President Donald Trump signed the executive order on 6 August 2025, framing the tariff hike as a punitive measure to pressure India into reducing its reliance on Russian energy.
Economic Impact:
About 55% of India’s exports to the U.S. were affected.
The tariff hike risked raising costs for American businesses and consumers, potentially fueling inflation and disrupting supply chains.
India’s Response:
Indian policymakers expressed concern over the economic and diplomatic repercussions, noting that the tariffs could strain bilateral trade relations and force India to explore alternative markets.