AMERICA AND INDIA ON THE BRINK: TRUMP IMPOSES 50% TARIFFS

Washington and New Delhi have found themselves at the heart of a new trade storm. U.S. President Donald Trump has announced a sharp increase in tariffs on Indian goods, raising them to 50 percent. For India — the world’s fifth-largest economy and one of America’s key partners — the move is a heavy blow that could shift the balance of power in global trade.

Just weeks ago, the Trump administration set a baseline tariff of 25 percent on Indian imports. But the White House deemed this insufficient. As Trump himself explained, the new step is meant to “show firmness” and punish India for purchasing Russian oil, which he claims helps Moscow finance its war in Ukraine.

Trump’s recent attempts to act as a mediator between Vladimir Putin and Volodymyr Zelensky collapsed without progress. In the wake of those failed initiatives, economic pressure on India has taken on a sharper, more confrontational tone.

New Delhi responded swiftly, accusing Washington of discrimination and pointing out that the world’s largest buyer of Russian oil — China — faces far lower tariffs of only 30 percent. India has hinted it is prepared to adopt retaliatory measures if the pressure continues.

Despite the mounting tensions, trade between the two nations has grown considerably in recent years. According to the U.S. Department of Commerce, in 2024 the United States imported more than $87 billion worth of goods from India, while American exports to India totaled just $42 billion. India’s key exports include pharmaceuticals, textiles, and telecommunications equipment. Smartphones, however, remain exempt from the new tariffs.

On the American side, major exports to India include oil, gas, chemicals, and aerospace technologies. These sectors may be the first to feel the strain if India follows through with countermeasures.

Today, the deterioration in U.S.–India relations is seen not merely as a bilateral trade dispute, but as another marker of global economic instability. Trump’s decision effectively turns India into a new front in the trade war, one that could reshape international markets and impact millions of consumers worldwide.