The United States’ 50% tariff on Indian imported goods has begun, in response to India’s purchases of Russian oil.
U.S. President Donald Trump signed an executive order to double tariffs on India earlier this month, bringing its tariff rate to the highest in Asia. The U.S. is also India’s largest export partner, representing US$8.3 billion in June.
Indian Prime Minister Narendra Modi has called for India’s citizens to increase domestic manufacturing and spending in addresses this week. “We should become self-reliant — not out of desperation, but out of pride," said Modi.
"Economic selfishness is on the rise globally and we mustn't sit and cry about our difficulties, we must rise above and not allow others to hold us in their clutches.”
India has said it will continue to buy Russian oil, though its refiners have reportedly agreed to cut purchases from Russia by around 200,000-400,000 barrels per day from October.
Russian oil represented around 35-40% of India’s imports in 2024, a major increase from 3% in 2021. India has been the second-largest importer of Russian fossil fuels in 2025 to date, after China.
India’s top exports to the U.S. include electronic equipment, precious stones and metals, and pharmaceuticals. Around US$79.44 billion in Indian goods was exported to the U.S. in 2024.
India became the largest exporter of smartphones to the U.S. this year, after companies like Apple relocated production from China to India to avoid the U.S.’ high tariffs on China.
Modi also announced an overhaul of India’s goods and services tax this month, in a bid to increase consumer spending in the country. While the plan has yet to be approved by the country’s GST Council, it would reportedly simplify the tax rate from four tiers to two tiers and take effect in October.
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