Likened to a ‘trade embargo’ and an ‘earthquake’, it could cut exports from affected sectors by as much as 70%
Donald Trump’s tariff of 50% have come into force on most US imports from India. The US president followed through on his threat to punish one of the world’s largest economies for its purchases of discounted Russian oil.
Washington added an extra 25% duty on top of the 25% imposed earlier this month, citing India’s refusal to stop buying Russian crude and defence hardware.
The duties, which are 16 percentage points higher than China, 31 points higher than most south-east Asian countries and 35 points above South Korea, have pushed US tariffs on Indian goods to levels that the investment house Nomura likened to a “trade embargo”.
The US is India’s largest export market, worth $86.5bn (£64.1bn) a year. Around two-thirds of shipments are covered by the 50% tariff, threatening jobs and growth across sectors reliant on US demand.
