Trump Slaps 50% Tariffs on Indian Imports – A Trade War That Could Shake Global Markets
Donald Trump has made good on his threat to punish India over its continued purchases of Russian oil, slapping a 50% tariff on most Indian imports into the United States. The move, which came into effect just after midnight in Washington on Wednesday, has sent shockwaves through global trade and raised fears of major disruption to supply chains.
This isn’t the first escalation. Earlier this month, Washington had already imposed 25% tariffs on Indian goods. But Trump doubled down, claiming that New Delhi’s Russian oil imports are indirectly funding Moscow’s war in Ukraine.
India in Trump’s Crosshairs
The White House has been hiking tariffs on nations across the globe since Trump’s return to office in January, straining ties with both allies and rivals. But with 50% tariffs now targeting India, exporters face some of the steepest duties ever levied on foreign goods entering the US.
Even Brazil is struggling under the same penalty, but Indian officials argue their country has been “unfairly singled out” for its Russia ties. Analysts warn this could push New Delhi closer to Moscow and Beijing — potentially reconfiguring global alliances.
According to the US Trade Representative, India’s exports to the US were worth $87.3 billion last year. Now, most of these goods face punishing duties, though some categories — such as smartphones — remain exempt, at least for now.
Trump’s Harsh Words
On Truth Social, Trump didn’t hold back, declaring:
“I don’t care what India does with Russia. They can take their dead economies down together, for all I care."
This hardline stance has rattled investors. In Mumbai, the BSE Sensex tumbled by 849 points (1%) on Tuesday, ahead of the tariff deadline.
India Stands Defiant
Despite the pressure, Prime Minister Narendra Modi struck a resilient tone. Urging citizens to back local industries, he said:
“All of us should follow the mantra of buying only ‘Made in India’ goods. Pressure on us may increase [from the tariffs], but we will bear it.”
India has refused to halt Russian crude imports, with External Affairs Minister S. Jaishankar blasting Washington’s demands as “unjustified and hypocritical”, noting that Europe trades far more with Russia without facing the same penalties.
Economic Impact Already Visible
Experts warn the fallout could be severe:
Goldman Sachs economist Santanu Sengupta predicted GDP growth could slip below 6%, down from the expected 6.5%, if tariffs remain.
Textile and apparel hubs in Tirupur, Delhi, and Surat have already cut production, with exporters warning they are losing out to rivals from China, Vietnam, Cambodia, and Thailand, who face much lower tariffs.
At stake: nearly 30% of India’s exports to the US, including pharmaceuticals, electronics, refined fuels, and raw drug materials. While these remain duty-free, critical sectors like textiles, gems & jewellery, and seafood are taking a hit.
“At 50% tariffs, exporting becomes nearly impossible,” Sengupta said.
A Strategic Setback
Beyond economics, the tariff war could erode US-India trust built over years of diplomatic effort. A senior Indian trade official warned:
“Trump has blown it. The hard work between the two countries, which managed to build a solid relationship despite mistrust, is now at risk. Rebooting won’t happen until Trump is out.”
Even so, both governments have kept trade talks alive. Jaishankar stressed:
“We are two big countries, we need to have conversations … the lines are not cut.”
India Tilts Toward Russia & China
As Washington tightens pressure, India has deepened ties with Moscow, its long-time “all-weather friend.” Jaishankar recently traveled to meet Vladimir Putin, who is expected in New Delhi later this year.
Meanwhile, Modi will visit China for the Shanghai Cooperation Organisation summit — his first trip there in seven years — in a cautious effort to stabilize relations after the deadly 2020 Himalayan border clash.
One senior Indian official summed it up:
“India will tiptoe toward China, but not in a full embrace. History and mistrust remain, but business realities demand cooperation.”
The Bigger Picture
Trump’s aggressive tariff policy is reshaping global trade. While aiming to punish Russia’s backers, critics say he’s hurting US allies, driving inflation risks higher, and undermining years of strategic diplomacy.
“This administration may set a record for the highest number of own goals with a key partner in such a short time,” warned Michael Kugelman, South Asia analyst.
The US-India tariff war is more than just an economic clash — it’s a battle that could redraw alliances, strain trust, and reshape the future of global trade.