- Tariffs of up to 50% threaten Indian exporters and jobs.
- Failed negotiations accused of politically wrong assessment, unanswered signals.
- The United States, India is trying to highlight security partnership.
Washington/New Delhi: US President Donald Trump’s doubling of tariffs on goods from India to as much as 50% came into force as planned Wednesday, escalating tensions between the world’s two largest democracies and strategic partners.
A penalty of 25%, which is imposed due to India’s purchase of Russian oil, adds Trump’s earlier 25% duty to many products from India. It takes overall tasks as high as 50% for goods such as clothing, pearls and jewelry, footwear, sporting products, furniture and chemicals – among the highest imposed by the United States and on par with Brazil and China.
The new tariffs threaten thousands of small exporters and jobs, including Prime Minister Narendra Modi’s home state of Gujarat.
An official of the Indian Ministry of Commerce said on condition of anonymity that exporters affected by tariffs would receive financial assistance and be called to diversify to markets such as China, Latin America and the Middle East.
A US Customs and Border Protection Notification to Senders provides a three-week exemption from Indian goods loaded on a ship and in transit to the United States before the midnight deadline. These goods can still enter the United States for prior lower tariffs before 1 p.m. 12:01 EDT (0401 GMT) on September 17.
Also exempt are steel, aluminum and derivative products, passenger cars, copper and other goods that are subject to separate tariffs of up to 50% under the National Security Act in section 232.
The Ministry of Commerce’s officials say the average customs duty for US imports is about 7.5%, while the US Trade Representative’s office has highlighted rates of up to 100% on cars and an average used tariff rate of 39% on US farm goods.
Failed conversations
As the deadline for midnight activation approached, US officials offered no hope that India could avert the tariffs.
“Yes,” the White House Trade Advisor said Peter Navarro when asked if the increased tariffs on India’s US-bound export would come into force as previously announced Wednesday. He offered no further details.
Wednesday’s customs relocation follows five rounds of unsuccessful lectures, where Indian officials had signaled optimism that US tariffs could be limited to 15%, the rate awarded to some other major US trading partners, including Japan, South Korea and the European Union.
Officials on both sides blamed politically wrong assessment and missed signals for the collapse of conversations between the world’s largest and fifth largest economies. Their two-way commodity trade amounted to $ 129 billion in 2024 with a $ 45.8 billion trading deficit, according to US Census Bureau data.
Export groups estimate that hiking can affect almost 55% of India’s $ 87 billion in goods exports to the United States, while benefiting competitors such as Vietnam, Bangladesh and China.
Persistent tariffs at this rate could dampen India’s growing appeal as an alternative manufacturing name to China for goods such as smartphones and electronics.
The standoff in the US India has raised questions about the broader relationship between India and the United States, important security partners who share concerns for China.
On Tuesday, the US Ministry of Foreign Affairs and India’s Ministry of External Affairs met identical declarations that said senior officials in ministries and defense departments met practically on Monday and expressed “Iver to continue to improve the breadth and depth of the bilateral relationship.”
Both sides also confirmed their commitment to Quad, a partnership that brings together the United States and India with Australia and Japan.
