WASHINGTON/NEW DELHI: US President Donald Trump’s doubling of tariffs on goods from India to as much as 50 perent took effect as scheduled on Wednesday, escalating tensions between the world’s two largest democracies and strategic partners.
A punitive 25 percent tariff imposed due to India’s purchases of Russian oil adds to Trump’s prior 25 percent tariff on many products from India. It takes total duties to as high as 50 percent for goods such as garments, gems and jewellery, footwear, sporting goods, furniture and chemicals - among the highest imposed by the US and on par with Brazil and China.
The new tariffs threaten thousands of small exporters and jobs, including in Prime Minister Narendra Modi’s home state of Gujarat.
India’s Commerce Ministry did not immediately respond to a request for comment. However, a Commerce Ministry official, speaking on condition of anonymity, said exporters hit by tariffs would receive financial assistance and be encouraged to diversify to markets such as China, Latin America and the Middle East. A US Customs and Border Protection notice to shippers provides a three-week exemption for Indian goods that were loaded onto a vessel and in transit to the US before the midnight deadline. These goods can still enter the US at prior lower tariff rates before 12:01 a.m. EDT (0401 GMT) on September 17.
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