India is part of a small group of major economies without a deal. And it now faces the highest tariff rate globally.
Save articles to read later and create your own reading list.
Even as the United States slaps India with a 50 percent tariff, the highest among all countries so far and one that will push their relationship to its lowest moment in years, one thing is clear: US President Donald Trump is more interested in onshoring than friend-shoring, experts say.
On Wednesday, the US announced an additional 25 percent tariff on India over its import of Russian oil, taking the total to 50 percent. The move caught most experts by surprise as New Delhi was one of the first to start trade negotiations with Washington, DC, and Trump and Indian Prime Minister Narendra Modi have repeatedly admired each other in public statements and called each other friends. Brazil is the only other country facing tariffs as high as India’s.
“The breakdown of the trade negotiations was a surprise,” said Vina Nadjibulla, vice president of strategy and research at the Asia Pacific Foundation of Canada.
