The 50% tariffs imposed by Donald Trump on India have officially come into force, only weeks after the U.S. president signed an executive order introducing an additional 25% penalty on Indian purchases of Russian oil and weapons.
These measures make India one of the hardest-hit countries by U.S. trade policies, severely impacting its exports to the American market — ranging from textiles to diamonds and seafood.
As the world’s fifth-largest economy, India faces serious economic consequences, especially since the U.S. has until recently been its largest trading partner, BBC reports.
In response to the blow, Prime Minister Narendra Modi pledged fiscal relief and stronger self-reliance. He announced a “massive tax source” for citizens and small businesses, as well as reforms to the tax system, including reductions and simplification of the Goods and Services Tax (GST).
During his Independence Day speech, Modi urged citizens to support domestic products and display “Swadeshi” (Made in India) signs outside their shops. “We must become self-reliant — not out of desperation, but out of pride,” he said, stressing that the world is facing a rise in economic selfishness.
Meanwhile, protests have already erupted. Activists and trade unions in Kolkata burned portraits of Trump on August 13, opposing the tariffs, which many see as a threat to the livelihoods of millions of Indian workers in export-oriented industries.
