NEW DELHI: Donald Trump’s 50 percent tariffs on Indian exports to the US took effect on Wednesday, with the first impact expected to be felt by labor-intensive sectors such as textiles and jewelry.
In an unexpected move earlier this month, the US president imposed an additional 25 percent punitive levy on Indian goods, citing New Delhi’s purchases of Russian oil. This added to his prior 25 percent tariff on many imports from the South Asian nation, raising the total duty to 50 percent.
While India has referred to the tariff regime as “unfair, unjustified and unreasonable,” it has continued talks with Washington, with the Ministry of External Affairs saying on Wednesday that earlier this week “officials advanced bilateral initiatives” and “discussed trade and investment.”
New Delhi and Washington have been in tariff talks since the beginning of the year, in the wake of the US’ ongoing global tariff campaign. In February, Prime Minister Narendra Modi met with Trump in Washington, D.C. to discuss strengthening bilateral ties, trade relations, and the procurement of new US weapons and aircraft.
In April, the Trump administration said it was imposing a 25 percent reciprocal tariff on Indian goods over India’s continued purchases of Russian oil and to rectify trade imbalances. Though a new deal was expected in July, it was not approved by Trump, leading to a breakdown in talks.
