U.S. President Donald Trump has imposed a 50% tariff on all goods made in India.
Earlier, he had set a 25% tariff, warning that an additional 25% would follow if India continued purchasing Russian oil.
However, the new tariff does not apply to electronics and pharmaceutical products, which has provided relief to companies like Apple.
According to experts, this decision will severely impact millions of Indian exporters and could weaken U.S.–India economic relations.
India has been buying discounted Russian oil, with the biggest beneficiaries being Mukesh Ambani’s Reliance Industries—considered close to Prime Minister Modi—and Nayara Energy, which has Russian investment.
According to The Business Standard, these two companies alone account for 40% of India’s Russian oil purchases.
Although China buys far more Russian oil than India, Trump has imposed additional tariffs only on India. Critics say this reflects unequal treatment.
The U.S. Treasury Secretary has claimed that Indian traders earned nearly $16 billion in profit from Russian oil purchases, with The Financial Times reporting that Reliance alone made nearly $6 billion.
India, however, argues that buying cheaper oil was encouraged by the U.S. and Western nations themselves. Critics counter that the real benefits are being reaped only by India’s biggest businessmen.
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