The Trump administration has imposed an additional 25% tariff on Indian goods, bringing the total tariff rate to 50%, effective August 27, 2025. This move aims to curb India's importation of Russian-origin oil and pressure Russia amid the ongoing conflict in Ukraine ยน.
*Key Highlights:*
- *Tariff Details:* The 50% tariff rate includes a 25% reciprocal tariff and an additional 25% levy targeting India's purchases of Russian oil.
- *Impact on India:* The tariffs could eliminate India's presence in the US, causing unemployment in export-driven hubs and weakening its role in the industrial value chain.
- *Affected Sectors:* Labour-intensive industries like textiles, garments, gems, and jewellery, marine exports, and leathers may be severely impacted, leading to job losses.
*India's Response:*
- *Criticism:* The Indian government has criticised the move as "unfair, unjustified, and unreasonable".
- *Continued Russian Oil Purchases:* India has refused to decrease or halt its oil imports from Russia, citing the need for affordable energy prices.
*Global Implications:*
- *Trade Relations:* The tariffs reflect the Trump administration's efforts to enforce US sanctions policy and reduce Russia's revenue from oil exports.
- *Market Impact:* The move may lead to increased trade tensions and impact global markets, including cryptocurrency.
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