Trade Tensions Rise: Indian Exports Face 50% US Tariff

On 27th August 2025, U.S. President Donald Trump imposed sweeping 50% tariffs on most Indian imports, citing India’s continued purchase of discounted Russian oil and defence hardware.

  • The tariff wall is 16 percentage points higher than China’s, 31 points above most Southeast Asian countries, and 35 points above South Korea.
  • Analysts compare the move to a “trade embargo” and warn it could wipe nearly $37 billion off India’s U.S. exports this year.

Why were the tariffs imposed?

  • The US administration has outlined multiple justifications for imposing tariffs on India:
  • Trade Deficit: The U.S. goods trade deficit with India stood at $45.7 billion in ....
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