US Tariffs on Indian Products Escalate Trade Tensions

• The US has imposed 50% tariffs on many Indian products.
• The duties are a punitive measure against India for buying Russian oil.
• Sectors like garments, gems, and footwear are heavily impacted.

GG News Bureau
Washington/New Delhi, 27th Aug: A new round of US tariffs has doubled the existing duty on many Indian products, bringing the total to a staggering 50%. The measure, which took effect on Wednesday, is a direct response from the Trump administration to India’s continued purchases of Russian oil.

The increased tariffs impact a range of key Indian export sectors, including garments, gems and jewellery, footwear, and sporting goods. The duties are among the highest the US has imposed and are on par with those on products from Brazil and China.

According to a government estimate, the tariffs could affect up to $48.2 billion worth of exports. Officials have warned that the new duties could make shipments to the US unviable and result in job losses and slower economic growth.

Former Foreign Secretary and Rajya Sabha MP Harsh Vardhan Shringla stated that New Delhi is working on finding alternative markets through Free Trade Agreements with countries like Australia and the UAE. Despite the trade dispute, he emphasized the strength of the India-US relationship, which is built on shared values.

A report by SBI Research indicates that the tariffs could affect India’s GDP by 40-50 basis points and lead to higher input costs. The report also notes that India’s loss in competitiveness could benefit rival exporters in countries like China and Vietnam. Key sectors like gems, jewellery, and shrimp exports are bracing for significant disruption and order cancellations.