NEW DELHI – The United States on Wednesday imposed a 50 percent tariff on Indian exports, upending the once-warm diplomatic and trade relationship between the two countries.
The tariffs went into effect at 12:01 a.m. Eastern time. President Donald Trump had announced on Aug. 6 that he would double the 25 percent U.S. tariffs against India as punishment for “directly or indirectly importing Russian Federation oil.” The initial 25 percent tariff went into effect Aug. 7.
“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,” Trump wrote on social media at the time. “They don’t care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA.”
India – the world’s fifth-largest economy and one of the United States’ largest trading partners – is now among the highest tariffed by Washington. The U.S. imported $87.3 billion worth of Indian goods in 2024, according to data from the U.S. Trade Representative.
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The Trump administration has become increasingly hostile toward New Delhi, also accusing India of hurting American workers. In response, India questioned Trump’s targeting of India over Russian oil purchases, saying China is Moscow’s largest buyer yet may be tariffed less than India.
In mid-July, Trump threatened tariffs on Russia if it did not stop fighting in Ukraine within 50 days, later shortening that deadline to early August. But on Aug. 6 – the day Trump announced the additional tariffs on India – Trump said he would meet with Russian President Vladimir Putin, and his announced deadline for Russia passed without a tariff change.
In India, the tariff enactment is creating political headaches for Prime Minister Narendra Modi. He has said he will protect India’s agriculture, seafood and dairy workers from being impacted by a trade deal with the U.S., sectors that together account for a majority of the country’s labor force. On Aug. 7, he said he was willing to “pay a heavy price” to do so.
“You all are witnessing the politics of economic selfishness in the world, how everyone is busy protecting their own self interest,” Modi said during a rally in Gujarat on Monday, without referring to a country by name.
But members of Modi’s political opposition have latched onto his inability to procure a deal with Trump as a failure of his foreign policy, which they say is heavier on joint appearances, hugs and scripted events than substantive diplomatic engagement.
The tariffs’ impact on India could be devastating. A 50 percent surcharge on India would impact 66 percent of its exports to the U.S., and could slash those exports to $49.6 billion next year, according to a report by the Global Trade Research Initiative. India’s apparel, textile, gems, shrimp, carpets and furniture exports would be most affected, the report said, “endangering hundreds of thousands of jobs.”
The tariff war has also had geopolitical consequences for Washington. Since Trump announced he would levy a 50 percent tariff on India earlier this month, Modi has courted a cozier relationship with members of the BRICS coalition, which includes China, Russia, Brazil and South Africa. Modi will also visit China at the end of this month, his first visit to the country in seven years.
Two of India’s leading stock market indexes, the BSE Sensex and Nifty 50, were down around 1 percent in value as of Wednesday afternoon, losses that were recorded after Tuesday’s closing. Both markets were closed Wednesday (August 27, 2025) to mark a Hindu religious festival.
Diamonds are among the products that will be affected by the tariffs. The city of Surat, in India’s western state of Gujarat, is the country’s diamond capital – and nearly every diamond sold in the world is first cut and polished there. As The Washington Post reported earlier this week, tariffs have brought the town to a near-standstill.