The US government has officially announced a 50% tariff on goods from India, effective from 9:30 am IST on August 27. This includes the previously imposed 25% tariff, meaning the total tariff rate is now doubled.
According to the US notice, any Indian goods arriving or released from warehouses on or after August 27 will face this higher tariff.
Former US President Donald Trump said the move is in response to India purchasing crude oil from Russia, which he claims supports Russia in the Ukraine war. India, however, has called the decision inappropriate, impractical, and unreasonable.
Trump had earlier planned a 26% tax but delayed it for 90 days before increasing it to 50%.
The tariff will impact around $48.2 billion worth of Indian exports, especially industries employing large numbers of workers such as textiles, leather, diamonds, jewelry, carpets, and furniture. However, medicines, electronics, and petroleum products will not be affected.
The US is India’s largest export market. Last year, India exported goods worth $87 billion to the US, but this figure could drop to $49.6 billion this year due to the tariff hike.
