Indian Exporters Face 50% US Tariff Amid Ukraine Oil Dispute

U.S. President Donald Trump's recent decision to double tariffs on Indian imports to 50% has caused significant disruption for Indian exporters, particularly small and medium-sized businesses, threatening to make many exports unviable. The steep tariffs, aimed at pressuring India to cease purchases of Russian oil, have prompted companies to consider relocating production to countries with lower tariffs, such as Kenya and Ethiopia, and to explore diversifying markets outside the U.S. Industry groups representing key sectors like gems, jewelry, and seafood have appealed to the Indian government for financial support, including subsidies and loans, to mitigate the impact of these tariffs. The tariffs pose a major challenge to India's 'Make in India' initiative and could reduce the nation's GDP by up to 1%, while also straining the historically strong U.S.-India relationship. Indian leaders, including Prime Minister Narendra Modi, have condemned the tariffs as unfair, with Modi expressing willingness to pay a personal price to protect India's interests. The situation is seen as a severe setback to Indian exports, with many orders on hold as American buyers reassess sourcing, adding to the uncertainty faced by exporters.