Pharmaceutical and electronics, including large apple investments in India, are still excluded from restrictions.
US president Donald Trump has signed a decision on the introduction of 50% of Indian goods import duties. The purpose of such a step was the New Delhi’s penalty for the continuation of Russian oil purchases, which, according to Trump, was the Russian war against Ukraine, Bloomberg reports.
The new tariffs began to work on Wednesday night, on August 27, doubling the existing 25% of fees. They will affect more than 55% of Indian exports in the United States – the largest sales market for the country.
Pharmaceutical and electronics, including large apple investments in India, are still excluded from restrictions.
The White House’s decision worsened the relationship between Washington and New Delhi, which in recent years has come up with partnerships compared to China. India called the US actions “unfair and unreasonable” and promised to continue the purchase of Russian oil.
“This will have a huge impact on India’s exporters, as 50% is not suitable for customers,” said Israr Ahmed, director of Farida Shoes PVT. LTD, which provides more than 60% of products in the USA.
At the same time, the influence is limited due to economic orientation in domestic demand – private consumption constitutes about 60% of the country’s GDP.
The United States is the largest export market for India ($ 87.4 billion in 2024), but it’s only 2% of the state’s GDP.
As you know, Donald Trump has repeatedly threatened India to increase tariffs, as it bought a large volume of Russian oil.
We added that India also accused the United States and Europe of trade in Russia after Trump threatened it with tariffs.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.