The duplication of the president of the United States, Donald Trump, of tariffs on goods from India, to 50 percent entered into force as scheduled on Wednesday, increasing the tensions between the two largest democracies and strategic partners in the world.
A 25PC punitive rate imposed due to the purchases of Russian oil India adds to the Trump’s 25 percent rate on many Indian products. Total tasks are needed up to 50pc for products such as garments, gems and jewels, footwear, sporting articles, furniture and chemical products, among the highest taxes for the United States and the pair with Brazil and China.
The new tariffs threaten thousands of small exporters and jobs, even in the native state of Prime Minister Narendra Modi de Gujarat.
The Ministry of Commerce of India did not immediately respond to a request for comments. However, an official of the Ministry of Commerce, who speaks under anonymity, said that exporters affected by tariffs would receive financial assistance and be encouraged to diversify to markets such as China, Latin America and the Middle East.
A customs and border protection notice of the United States to the loaders provides a three -week exemption for Indian goods that were loaded in a boat and in transit to the United States before the deadline of midnight.
These goods can still enter the US at previous rates tariffs before 12:01 am edt (09:01 pkt) on September 17.
They are also exempt from steel, aluminum and derived products, passenger vehicles, copper and other goods subject to separate rates of up to 50 percent under the National Security Commerce Law of Section 232.
Indian Ministry of Commerce officials say that the average rate on US imports. It is around 7.5 %, while the United States commercial representative office has highlighted rates of up to 100pc in cars and a average applied rate rate of 39pc in US agricultural products.
Failed talks
As the midnight activation deadline approached, US officials did not offer any hope for India to avoid tariffs.
“Yes,” said the White House commercial advisor, Peter Navarro, when asked if the increase in tariffs on exports destined to the United States of India would come into force as announced above on Wednesday. He offered no more details.
Wednesday’s tariff movement follows five rounds of failed conversations, during which Indian officials had indicated the optimism that US tariffs could be limited to 15 percent, the rate awarded to the goods of other important commercial partners of the United States, including Japan, South Korea and the European Union.
The officials on both sides blamed Judgment Political and lost signs due to the collapse in the conversations between the largest and largest economies in the world. Its trade of two -road goods totaled $ 129 billion in 2024, with an American commercial deficit of $ 45.8 billion, according to data from the United States Census Office.
Exporters lose competitive advantage
The export groups estimate that the increases could affect almost 55 % of the $ 87 billion of India in exports of merchandise to the US, while benefiting competitors such as Vietnam, Bangladesh and China.
“The measure will interrupt Indian exports to the largest export market,” said SC Ralhan, president of the Federation of Indian export organizations, noting that approximately 55 % of exports, including textiles, chemicals and leather, will face a price disadvantage of 30-35 percent against competitors.
The government must consider a one year moratorium on bank loans for affected exporters, in addition to extending low -cost credit and easier loan availability, he said. Rajaswari Senguta, professor of Economics at the Indira Gandhi Institute for Mumbai Development Research, said that allowing the rupee “depreciae is a way of providing indirect support to exporters” and recovering lost competitiveness.
Tariffs held at this rate could affect the growing attraction of India as an alternative manufacturing center to China for products such as smart and electronic phones.
The confrontation between the United States and India has asked questions about the broader relationship between India and the United States, important security partners who share concerns about China.
However, on Tuesday, the US Department of State and the Ministry of External Affairs of India issued identical statements that say that the senior officials of the ministries and the departments of Defense met virtually on Monday and expressed “eagerness to continue improving the breadth and depth of the bilateral relationship.”
Both parties also reaffirmed their commitment to Quad, an association that brings together the United States and India with Australia and Japan.
