U.S. President Donald Trump’s decision to double tariffs on Indian goods to 50% came into effect on Wednesday, after the deadline passed without a trade agreement between Washington and New Delhi.
U.S. Customs and Border Protection confirmed the move in a notice issued Tuesday, stating that a wide range of Indian goods will be impacted. However, certain items such as steel, copper, aluminum, pharmaceuticals, automobiles, and electronics will remain exempt.
Trump had initially announced 25% tariffs earlier this month but warned they would double within three weeks if India did not curb its purchases of Russian oil. The new 50% tariffs, effective from midnight Wednesday, also come with U.S. demands for greater access to India’s agricultural market—a politically sensitive issue for Prime Minister Narendra Modi’s BJP government.
India now faces among the highest U.S. tariff rates, alongside Brazil. Indian officials have criticized the move as unfair, noting that China continues to buy Russian oil without similar penalties. Modi has signaled no plans to reduce oil imports, stressing that India will withstand the tariff impact.
India remains heavily reliant on imported oil, which accounts for around 80% of its consumption. New Delhi has pledged support for local exporters through measures such as redirecting trade toward Europe and China, as well as potential tax relief in key sectors.
Still, analysts warn of economic headwinds. ANZ noted that the tariffs could weigh on India’s strongest export industries, curb industrial investment, and pressure the stock market. On Tuesday, the Nifty 50 index fell 1% before markets closed for a holiday. Meanwhile, the Indian rupee traded near record lows reached after Trump’s initial tariff announcement.
