The rates imposed by India by Donald Trump have entered into force. What effects are expected on one of the world's largest economy
Indian Prime Minister Narendra Modi and Donald Trump, at the White House: Molly Riley / White House / Zuma Press / Profimedia
The new rates include a 25% punitive fee imposed by Donald Trump as a punishment due to Russian oil purchases. The new tax is added to the previous rate of 25% for many Indian products. Thus, total taxes reach up to 50% for goods such as clothing, precious stones and jewelry, footwear, sports articles, furniture and chemicals, reports Reuters.
The new rates are some of the highest imposed by the US and comparable to those in Brazil and China. They endanger thousands of small exporters and jobs, including in the native state of Prime Minister Narendra Modi, Gujarat.
The Ministry of Commerce of India did not respond to Reuters's request to talk about the effects of tariffs. In contrast, an official of the ministry, who spoke under the protection of anonymity, said that exporters affected by tariffs will receive financial support and will be encouraged to orient themselves to markets such as China, Latin America and the Middle East.
An opinion of the customs service and US border protection transmitted to the carriers provides for a three-week exemption for Indian goods that were already loaded on ships and in transit to the US before the deadline.
The steel, aluminum and derivative products, passenger vehicles, copper and other goods subject to separate rates of up to 50% according to the commercial national security law are also exempted.
The officials of the Ministry of Commerce of India say that the average tariff for US imports is about 7.5%, while the US commercial representative emphasized up to 100% taxes for cars and an average rate applied to 39% for American agricultural products.
Failed negotiations
American officials have not offered India any hope of avoiding tariffs. “Yes,” said Peter Navarro, commercial counselor of the White House, asked if the tariff increases for India exports to the US will come into effect on Wednesday, as previously announced. He did not provide other details.
Donald Trump's measure comes after five rounds of failed negotiations, during which Indian officials have expressed optimism that American rates could be capped at 15%, the rate granted to other important US partners, including Japan, South Korea and the European Union.
Officials on both sides blamed errors of political appreciation and signals missed for the failure of discussions between the greatest economy of the world and the fifth in size.
The bilateral trade of goods totaled $ 129 billion in 2024, with an American commercial deficit of $ 45.8 billion, according to the data of the US Census Bureau.
