Indian exporters are bracing for major disruptions after Washington confirmed it will impose an additional 25% tariff on all Indian-origin goods beginning Wednesday, escalating trade tensions with Asia’s third-largest economy.
The US Department of Homeland Security announced that the new duties will apply to all Indian goods entering the country for consumption from 12:01 a.m. EDT Wednesday (9:31 p.m. IST). The move follows President Donald Trump’s decision earlier this month to penalize India for its increased purchases of Russian oil, which Washington argues indirectly supports Moscow’s war in Ukraine.
With the latest measures, US duties on Indian goods will rise as high as 50% among the steepest ever levied by Washington. Exceptions include in-transit shipments with proper certification, humanitarian aid, and products covered by reciprocal trade agreements.
The Indian rupee slipped 0.17% to 87.73 per US dollar in early trade, diverging from gains in other currencies against the greenback.
India’s Commerce Ministry has yet to comment publicly, but an official told reporters the government has “no hope for any immediate relief or delay” in the tariffs. The official added that exporters will receive financial assistance and be encouraged to diversify into new markets, with China, Latin America, and the Middle East identified as priority regions.
Prime Minister Narendra Modi, meanwhile, vowed not to compromise the interests of Indian farmers “even if there is a heavy price to pay.” Modi is also preparing his first visit to China in seven years later this month, a signal of cautious outreach amid worsening ties with Washington.
Erizia Rubyjeana
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