India has vowed not to “bow down” to Washington after the United States imposed a sweeping 50% tariff on Indian goods, a move that threatens to disrupt billions in annual trade between the two countries.
At an industry event in New Delhi on Friday, Commerce Minister Piyush Goyal said India was open to fair trade deals but would not appear weak under external pressure. “We will continue to move forward together and capture new markets,” he stressed.
The tariffs, which took effect this week, were introduced in retaliation for India’s large-scale imports of discounted Russian oil amid Washington’s efforts to isolate Moscow over its prolonged war in Ukraine.
The decision has further strained US-India relations. While Washington insists on more access to India’s agriculture and dairy sectors, Prime Minister Narendra Modi has defended protections for farmers—one of the country’s most powerful voting blocs.
The US, India’s largest export market in 2024 with shipments worth $87.3 billion, could see a major shift in trade flows. Analysts warn that the 50% duty is “tantamount to a trade embargo” and risks crippling small and medium exporters in textiles, jewellery, and seafood. Reports already suggest Indian suppliers are losing orders to competitors in Bangladesh and Vietnam, sparking fears of significant job losses.
Goyal added that the government will roll out relief measures in the coming days to shield exporters and keep trade momentum strong. “India’s exports this year will surpass last year’s numbers,” he said confidently.
Meanwhile, in Washington, the US Court of Appeals for the Federal Circuit upheld a ruling that questioned the legality of former President Donald Trump’s sweeping tariffs, stating that his reliance on the International Emergency Economic Powers Act lacked merit. However, the court allowed the tariff policy to remain in effect until October 14, pending a possible appeal to the Supreme Court.
New Source: Pakistan News Beat Agency
FAQs
Q1: Why did the US impose a 50% tariff on Indian goods?
The US introduced the tariffs in response to India’s large-scale imports of Russian oil, part of Washington’s strategy to pressure Moscow over the war in Ukraine.
Q2: How will these tariffs affect India’s economy?
The tariffs are expected to hurt Indian exporters, particularly in textiles, seafood, and jewellery, with fears of job losses and shrinking trade volumes.
Q3: How is India responding to the tariffs?
India’s Trade Minister Piyush Goyal said India will seek new markets, roll out support measures for exporters, and ensure exports continue to grow despite the setback.
Q4: What is the status of the US tariffs legally?
A US appeals court recently ruled against Trump’s universal tariff authority but allowed the policy to stay in place until October 14 while awaiting a possible Supreme Court review.
