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lite.cnn.com - on gopher - inofficial | |
ARTICLE VIEW: | |
Trump makes good on threat to impose 50% tariffs on India imports | |
By Elisabeth Buchwald, CNN | |
Updated: | |
10:49 AM EDT, Wed August 27, 2025 | |
Source: CNN | |
President Donald Trump made good on his threat to double tariffs on | |
imports from India to 50%, a move that could endanger relations with | |
one of America’s most important trading partners and send consumer | |
prices higher. | |
This comes just weeks after Trump instituted a on Indian goods. Levies | |
on India, , are now among the highest the United States charges across | |
all countries. | |
The latest round of tariffs on India seeks to punish the country for | |
importing Russian oil and helping Russia finance its war with Ukraine, | |
Trump has previously said. | |
The US leader recently held separate meetings with Russian President | |
Vladimir Putin and Ukrainian President Volodymyr Zelenskyy to help | |
broker a deal to end their years-long war. However, the talks remain at | |
an impasse. | |
and, more recently, consumers, are already seeing resulting from | |
Trump’s tariff campaign while the . The ramped-up levies on Indian | |
goods could worsen both effects. | |
New Delhi signaled it would retaliate against Trump’s tariffs earlier | |
this month, when Trump initially vowed to impose what he referred to as | |
“secondary sanctions.” | |
India’s junior foreign minister, Kirti Vardhan Singh, told reporters | |
Wednesday the government is “taking appropriate steps so that it does | |
not harm our economy and let me assure you that the strength of our | |
economy will carry us through these times.” | |
“Our concern is our energy security, and we will continue to purchase | |
energy sources from whichever country benefits us,” he said. | |
India has accused the Trump administration of unfairly penalizing the | |
country, pointing out that other countries that import oil from Russia | |
aren’t facing such levies. China, for instance, is the top buyer of | |
Russian oil, but its products face a minimum 30% tariff. Trump has | |
warned, though, that other countries that purchase oil from Russia | |
could face higher tariffs soon. | |
India’s rising importance to American businesses and consumers | |
The has widened significantly over the past decade, but it’s come as | |
both countries roughly doubled the amount of imported goods from one | |
another. | |
Last year, the United States imported $87 billion worth of goods from | |
India, compared to about $42 billion in American goods exported to | |
India, according to Commerce Department data. As Trump ramped up | |
tariffs on China in his first term and earlier this year, American | |
businesses were incentivized to seek out alternative production | |
locations like India. | |
The top goods the US received from India last year included | |
pharmaceuticals, communications equipment, such as smartphones, and | |
apparel. Smartphones, however, are exempt from so-called | |
“reciprocal” tariffs, which includes the 50% tax on Indian goods. | |
As is the case with almost all country-specific duties Trump has | |
enacted, sectoral tariffs — such as the 50% across-the-board tariff | |
on steel and aluminum, as well as others he’s threatened — won’t | |
be stacked. This means that steel and aluminum products from India | |
there will face a 50% tariff rather than a combined 100% tariff. | |
Meanwhile, the top American exports to India were various oils and | |
gases, chemicals and aerospace products and parts. These industries | |
could be among the most vulnerable if India decides to slap retaliatory | |
tariffs on American goods. | |
But it’s not just physical goods that America has grown increasingly | |
reliant on India for. On top of production centers, American companies, | |
including American Express, JPMorgan Chase, Microsoft and Google, have | |
deepened their footprint in India in recent years by expanding or | |
opening new offices there. | |
The Indian government could respond to higher tariffs Trump imposed by | |
making it more onerous for such companies to do business there. | |
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