Indian exporters are preparing for significant disruptions as the United States moves to impose an additional 25 per cent tariff on all Indian-origin goods beginning Wednesday, escalating trade tensions with Asia’s third-largest economy.
The US Department of Homeland Security said the new duties will apply from 12:01 a.m. EDT Wednesday (9:31 p.m. IST) on all Indian goods entering the country for consumption. The move follows President Donald Trump’s earlier decision to penalise India over increased purchases of Russian oil, which Washington argues indirectly supports Moscow’s war in Ukraine.
The new measures will push tariffs on some Indian goods as high as 50 per cent — among the steepest ever imposed by Washington. Exemptions will cover in-transit shipments with proper certification, humanitarian aid, and products under reciprocal trade agreements.
The Indian rupee weakened 0.17 per cent to 87.73 against the US dollar in early trading, diverging from gains in most other major currencies.
While India’s Commerce Ministry has not issued an official statement, a senior government official told reporters there was “no hope for any immediate relief or delay” in the tariffs. The official said exporters would receive financial support and be encouraged to diversify into markets in China, Latin America, and the Middle East.
Prime Minister Narendra Modi vowed not to compromise the interests of Indian farmers “even if there is a heavy price to pay.” He is also preparing for his first visit to China in seven years later this month, signalling cautious outreach amid worsening relations with Washington.
