US raises India tariffs to 50% Aug 27, affecting $48B in trade

The United States’ decision to raise tariffs on Indian imports to 50 percent, effective August 27, is set to reverberate through trade, industry and policymaking on both sides of the Atlantic, Indian officials and economic advisers said, even as New Delhi judges the immediate hit to be limited. Washington’s move, which combines a 25 percent base duty with an additional 25 percent levy tied to India’s continued purchases of discounted Russian crude, will directly affect more than $48 billion in shipments and targets sectors such as textiles and clothing, gems and jewellery, seafood, leather and footwear, animal products, chemicals, and electrical and mechanical machinery, the Indian Finance Ministry said in its August monthly review.

“While the immediate impact of recent U.S. tariffs on Indian exports may appear limited, their secondary and tertiary effects on the economy pose challenges that must be addressed,” the Finance Ministry said, adding that ongoing India U.S. trade negotiations will be crucial. The ministry further urged diversification of trade links and highlighted recently concluded free trade agreements with the United Kingdom and EFTA, along with ongoing talks...