Trump Punishes India for Purchasing Russian Oil by Doubling Tariff Rate to 50%

Donald Trump has imposed 50% tariffs on most US imports from India, making good on a threat to punish one of the world's largest economies over its purchases of discounted Russian oil.

- Callum Jones New York Penelope MacRae Delhi

The tariffs, which came into effect just after midnight on Wednesday in Washington, risk inflicting significant damage on the Indian economy and further disrupting global supply chains.

US tariffs of 25% on Indian goods went into force earlier this month, but Trump announced plans to double the rate, citing New Delhi's purchases of Russian oil, which the White House has argued is indirectly funding Russia's war against Ukraine.

The US president has significantly increased US tariffs on goods from much of the world since re-entering the White House in January, straining relations and fueling fears of higher inflation.

This latest move leaves Indian exporters facing among the highest US duties Trump has imposed so far. Brazil is also grappling with 50% tariffs on its exports to the US.

Ministers in India argue it has been unjustly singled out for its trade relationship with Russia, and officials caution that the country is likely to work more closely with Moscow and Beijing—and drift further from Washington—as a result.

The US imported $87.3bn worth of Indian goods last year, according to the US trade representative.

Narendra Modi has urged Indians to buy domestic products in response to Donald Trump's steep trade levies. PHOTOGRAPH: MICHAEL WYKE/AP

Most of those goods now face steep duties, although some key products including smartphones are set to be spared, for now. The action, confirmed in a notice by the US Department of Homeland Security this week, prompted some economists to predict a precipitous fall in trade between the two countries.