The United States has sharply raised tariffs on Indian goods to 50%, escalating a trade standoff that threatens billions in exports and could slow India’s economic growth.
The move, ordered by President Donald Trump, comes in response to India’s continued purchase of Russian oil and follows weeks of stalled trade talks. The duties target key sectors including textiles, gems and jewellery, leather, food products, and automobiles, putting at risk over $48 billion worth of shipments to the U.S.
The impact is already visible in Surat, India’s diamond hub, where American demand has plunged. Industry groups say tens of thousands of workers have lost jobs, with more layoffs looming if the tariff dispute drags on.
Economists estimate the measures could shave 30–80 basis points off India’s GDP growth this fiscal year. The Sensex and Nifty also fell in early trade on Wednesday, reflecting investor concerns.
Indian officials have condemned the US action as “unjustified” and are preparing countermeasures, including tax relief and incentives for exporters, while exploring new trade opportunities in Africa, Southeast Asia, and Europe.
The tariff shock marks a serious setback in India-US trade relations, once aimed at reaching a $500 billion partnership by 2030, but now stalled amid disputes over energy, agriculture, and data rules.
