The recent decision by the United States to impose a 50% tariff on Indian exports has become a major topic of discussion both domestically and internationally. US President Donald Trump has cited India’s large-scale purchases of crude oil from Russia as the primary reason behind the move. According to Washington, these purchases indirectly provide financial support to Russia, which is then used in its war against Ukraine.
This tariff decision could have serious consequences for India’s $87 billion worth of exports to the US. Sectors such as textiles, jewellery, auto parts, and chemicals are among the most affected, with a total of 55% of Indian exports facing the threat of high tariffs. Experts warn that if the tariff remains in place, trading of some products could almost come to a halt, as smaller exporters will struggle to absorb even an additional 10–15% tax.
Amid this escalating trade tension, a US delegation is scheduled to visit India on August 25 for the sixth round of talks. This meeting is seen as crucial for finding a way to reduce or remove the tariffs. Without progress in these discussions, both nations could face economic setbacks.
Interestingly, the tariff move has also faced criticism within the United States itself. A recent survey shows that 53% of Americans believe the tariff is a wrong decision, while 43% support it. The Democratic Institute, a US-based think tank, has warned that such measures could harm the overall relationship between India and the US.
The tension comes at a time when trade relations between the two countries were actually improving. In the first half of this year, India increased its crude oil imports from the US by 50%. In July alone, imports rose by 23%, with the US share in India’s total crude imports jumping from 3% last year to 8% now. Analysts argue that this tariff war could hurt the US as well, given the growing economic engagement between the two nations.
Public sentiment in both countries reflects the unease. In India, opposition to the tariff has spilled out from the digital space onto the streets. Several organisations have launched boycott campaigns against major US companies such as Amazon, Walmart, Coca-Cola, and Apple. Social media hashtags like “Boycott US” and “Boycott USA” are trending widely.
Prime Minister Narendra Modi has also responded by urging a stronger focus on “Made in India” products in light of these tariff threats. Analysts warn that the boycott could be costly for US companies, as India is the largest market for WhatsApp and Domino’s, and a leading market for Pepsi and Coca-Cola. Losing access to such a significant consumer base could be a major setback, with finding a new market of similar scale being virtually impossible.
With economic stakes high on both sides, all eyes are now on the upcoming trade talks on August 25, which could determine whether the current tariff standoff can be resolved or whether tensions will deepen further.
Disclaimer:
This article is for informational purposes only and is based on publicly available reports and data at the time of writing. It does not represent any official stance or endorsement and should not be considered legal, financial, or trade advice. Readers are encouraged to verify facts from official sources before drawing conclusions or taking action. The mention of companies or organisations is purely for context and does not imply support or opposition.
