Trump’s 50% Tariffs on India Take Effect 

U.S. President Donald Trump’s sweeping 50% tariffs on most imports from India came into effect Wednesday, jolting the $131.8 billion trading relationship between the two countries.

The move follows a first wave of 25% duties in early August, after talks between Washington and New Delhi collapsed. The U.S. had pushed for greater access to Indian agriculture and dairy markets, demands India refused. Days later, Trump doubled down, imposing an additional 25% penalty in retaliation for India’s continued purchases of Russian oil.

The tariffs strike hardest at gems and jewelry, seafood, and textiles, sectors where India traditionally dominates. Pharmaceuticals, electronics, refined fuels, and raw drug materials — representing about 30% of Indian exports to the U.S., remain exempt. Still, the new measures threaten to erode one of the few surpluses India enjoys, a $41.18 billion advantage in bilateral trade.

In a nationally broadcast address, Prime Minister Narendra Modi sought to rally the public: “Economic selfishness is on the rise globally and we must not sit and cry about our difficulties. We must rise above and not allow others to hold us in their clutches.”

He called on Indians to buy domestically produced goods and urged shopkeepers to showcase “Made in India” signs prominently. While acknowledging the pain of tariffs, Modi said India was prepared to endure them, framing the crisis as an opportunity for self-reliance.

To cushion the blow, New Delhi is preparing to cut consumption taxes by October, coinciding with the Diwali festival, the nation’s busiest shopping season. Meanwhile, Foreign Minister S. Jaishankar said India was “perplexed” by what he called the “illogical” use of secondary U.S. sanctions tied to Russian oil purchases.