“US-India trade ties hit as Trump’s 50% tariffs threaten jobs.”
US President Donald Trump has officially doubled import tariffs on Indian goods, raising them to as high as 50%, in a move that has strained US-India trade ties and sparked concerns for exporters, jobs, and economic growth in India.
The steep hike — imposed due to India’s continued purchase of Russian oil — affects a wide range of goods including garments, jewelry, chemicals, sporting goods, and furniture. Export groups warn that nearly 55% of India’s $87 billion in exports to the US could be impacted, threatening up to 2 million jobs, particularly in Prime Minister Narendra Modi’s home state of Gujarat.
Despite five rounds of negotiations, Washington and New Delhi have failed to reach a trade agreement to reduce tariff rates. The US argues India’s Russian oil imports are funding Moscow’s war in Ukraine, a claim New Delhi rejects as a double standard.
Markets reacted nervously, with Indian stocks logging their worst session in three months and the rupee falling to a three-week low. However, analysts suggest the crisis could push India toward further economic reforms, making its export base more competitive in the long run.
While the tariffs pose an immediate challenge, Indian officials stressed that the country’s strong domestic demand and diversified economy will help cushion the blow. The government is also exploring steps to shield exporters from losses.
The standoff raises questions over the broader strategic partnership between the US and India, though both countries maintain they remain committed to deepening ties in security and defense cooperation.US-India trade ties
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