India Hit with Punishing US Tariffs for Buying Russian Oil 

US tariffs of 50 percent on some Indian goods took effect Wednesday, weeks after US President Donald Trump ordered an additional 25 percent penalty on New Delhi in response to its continued purchase of Russian oil and weapons, the BBC reported. 

Indian Prime Minister Narendra Modi pledged to remain resolute in the face of what he called “economic selfishness.” He invited people to become self-reliant and urged small business owners to put up “Swadeshi” or “Made in India” signs outside their stores. 

While stock markets were closed in India on Wednesday due to a public holiday, Modi vowed to protect the country’s farmers and small businesses, NBC News wrote. 

An Indian government source also told Reuters that they aim to increase shipments of textiles, leather, gems, and jewelry to other countries, while likely providing financial assistance to affected businesses. 

A major hurdle in the five rounds of inconclusive tariff negotiations between New Delhi and Washington ahead of the Aug. 1 deadline has been the US push for greater access to India’s expansive agricultural and dairy markets.  

Further trade negotiations were scheduled for earlier this week, but they have been called off. 

Modi is also facing domestic pressure not to surrender to US demands, but Trump is unlikely to ease his insistence that India halt its Russian oil purchases, as he recently turned his attention to brokering peace in Ukraine. 

According to Eric Garcetti, the US ambassador to India under President Joe Biden, India continued buying Russian oil in line with past US requests aimed at keeping global oil prices low amid Western sanctions on Russia.  

Now, India is paying a steep price for that policy. 

One of the US’s strongest partners in the Indo-Pacific, India is now one of the countries facing the highest tariffs in the world. The higher tax could significantly undermine exports and stall growth in the world’s fifth-largest economy, considering that the US was, until recently, India’s largest trading partner. 

The tariffs mark a sharp reversal from the favorable standing India appeared to hold at the start of Trump’s second term due to its growing economic ties with the US, its strategic value in countering the rise of China, and the personal relationship between Trump and Modi.