- Prices up to 50% threaten Indian exporters and jobs.
- Failure of talks attributed to the errors of political judgment, to missed signals.
- The United States, India seeks to highlight the security partnership.
Washington / New Delhi: The doubling of American President Donald Trump’s prices on India’s goods at 50% came into force on Wednesday, degenerating tensions between the two largest democracies and strategic partners in the world.
A punitive price of 25% imposed due to Indian Russian oil purchases adds to the 25% price of Trump on many products from India. Total 50% tasks are needed for products such as clothing, precious stones and jewelry, shoes, sports items, furniture and chemicals – among the highest imposed by the United States and equal with Brazil and China.
The new prices threatens thousands of small exporters and jobs, especially in the original state of Prime Minister Narendra Modi, Gujarat.
An official of the Indian Ministry of Commerce said on condition of anonymity that exporters struck by prices would receive financial aid and would be encouraged to diversify in markets such as China, Latin America and the Middle East.
A customs and protection notice of American border to sender provides a three-week exemption for Indian products that have been loaded on a ship and in transit to the United States before the midnight deadline. These goods can still enter the United States at the lower price rates before 00h01 HA (0401 GMT) on September 17.
Steel, aluminum and derivative products, tourist vehicles, copper and other goods are also exempt from distinct products up to 50% under the national security law of article 232.
Managers of the Commercial Ministry of India claim that the average price on American imports is approximately 7.5%, while the office of the American commercial representative has highlighted rates of up to 100% on cars and an average applied rate of 39% on American agricultural products.
Failing
As midnight activation date approach, US officials did not offer any hope for India to avoid prices.
“Yes,” said the White House Commercial Advisor Peter Navarro when he was asked if the increased prices on exports linked to the United States of India would come into force as announced on Wednesday. He did not offer any other details.
Wednesday’s pricing decision follows five cycles of failed talks, during which Indian officials had pointed out the optimism that the American prices could be capped at 15%, the rate granted to the goods of certain other major American trade partners, including Japan, South Korea and the European Union.
Officials on both sides blamed the errors of political judgment and lacked signals for the breakdown of talks between the largest and fifth largest economies in the world. Their two -way product trade totaled $ 129 billion in 2024, with an American trade deficit of $ 45.8 billion, according to US Census Bureau data.
Exporting groups believe that increases could affect almost 55% of the $ 87 billion in India from India to the United States, while benefiting competitors such as Vietnam, Bangladesh and China.
The prices supported at this rate could remove the growing attraction of India as an alternative manufacturing center for China for goods such as smartphones and electronics.
The dead end of the United States-Indus has raised questions about the broader relations between India and the United States, important security partners who share concerns about China.
However, on Tuesday, the US State Department and the Indian Ministry of External Affairs published identical statements saying that senior officials from ministries and defense services met on Monday and expressed “eagerness to continue to improve the extent and depth of the bilateral relationship”.
The two parties also reaffirmed their commitment to the Quad, a partnership that brings together the United States and India with Australia and Japan.
