US Enforces 50% Tariffs on Indian Imports Amid Fallout Over Russian Oil Trade

The U.S. has imposed a 50% tariff on Indian goods, citing India’s Russian oil trade. The move could cut Indian exports to the U.S. by 43%, hitting sectors like textiles and gems hard. India calls the decision “unjustified,” while exporters warn of halted operations, job losses, and a looming export crisis.

The United States has officially enforced a sweeping 50% tariff on Indian imports starting Wednesday, a move that marks a sharp escalation in trade tensions between Washington and New Delhi over India’s continued oil trade with Russia.

A formal notice from the Department of Homeland Security (DHS), signed by Secretary Kristi Noem, confirmed that an additional 25% import duty will be added to the existing 25%, effective 12:01 a.m. EDT on August 27. This historic tariff hike will apply to all Indian-origin goods entering the U.S. for consumption, with limited exemptions for in-transit goods arriving by September 17.

While electronics and pharmaceutical products — which account for nearly 40% of India’s exports to the U.S. — remain temporarily exempt, critical sectors like textiles, gems, jewelry, shrimp, furniture, and carpets are set to bear the full burden. Industry estimates suggest about 66% of Indian exports will face the full 50% duty.

The benchmark Sensex and Nifty dropped over 1% as news of the tariff confirmation rattled markets, while the rupee weakened to 87.68 per dollar — nearing a record low.

Exporters across major manufacturing hubs like Tirupur, Surat, and Noida have already begun halting operations, citing unsustainable cost structures. SC Ralhan, president of the Federation of Indian Export Organisations (FIEO), called the situation “alarming” and warned of massive job losses across labour-intensive industries.

A report by the Global Trade Research Initiative (GTRI) predicts Indian exports to the U.S. could fall 43% — from $86.5 billion to $49.6 billion — within a year, with vulnerable sectors seeing up to 70% declines.

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The Indian government has condemned the tariffs as "unjustified," but officials admit no immediate relief is expected. As Washington holds firm, New Delhi is now rushing to diversify exports to nearly 50 alternative markets in Asia, Africa, and Latin America.