Trump Imposes 50% Tariffs on $87 Billion Indian Exports

US President Donald Trump's decision to impose a sweeping 50% tariff on Indian goods has escalated trade tensions between the US and India, affecting a broad range of sectors and threatening $87 billion worth of exports. The tariff, implemented in two stages starting from August 7, aims to penalize India for purchasing discounted Russian oil despite Western sanctions, and is among the highest rates the US has levied on any trading partner. Key Indian industries, including the gem and jewelry sector which relies heavily on the US market for nearly 30% of its exports, and the knitwear sector in Tiruppur, face severe disruptions, with concerns that higher tariffs will erode India's competitiveness against countries like Turkey, Vietnam, and Thailand. Indian officials have acknowledged that about 55% of their merchandise exports to the US will be subject to these tariffs, and are engaging stakeholders to assess and respond to the evolving situation. Despite the shockwaves, some exporters remain hopeful that diplomatic efforts and talks, including India's invitation for negotiations and a planned US-Russia leaders' meeting, could pave the way for resolution. The developments underscore the high stakes involved in US-India trade relations and the potential for significant economic impact if tensions persist.