U.S. Imposes 50% Tariffs on Indian Exports Over Russian Oil Ties—Major Export Sectors at Risk
The U.S. has slapped a 50% tariff on Indian goods, citing the country’s ongoing purchase of Russian oil. Major exporters like textiles and gems stand vulnerable, while India asserts its energy choices remain sovereign and strategic.
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On August 27, 2025, the U.S. enacted soaring 50% tariffs on a wide range of Indian exports—doubling the earlier 25% tariff—as retaliation for India’s continued purchases of discounted Russian oil. Analysts say the move may derail nearly $37 billion in overseas shipments and obliterate most cost gains India made from oil savings.
Industry sectors most exposed include textiles, gems and jewelry, footwear, furniture, chemicals, and marine products—many of which depend heavily on U.S. markets.
Notably, pharmaceuticals, electronics, and auto components remain exempt—though policymakers are cautious about broader consequences for manufacturing and trade access.
India’s response has been defiant: the government insists energy security overrides external pressure and continues to import Russian oil, underscoring its strategic autonomy. Officials reaffirmed their commitment to global peace and resisting foreign coercion.
Economically, the tariff hit could wipe out decades of progress in certain export categories. Still, India eyes long-term stability by diversifying trade partners and fortifying domestic industrial growth.
