'Tariff so high your head will spin': Trump as its 50 % tariffs on India kicks in today, India stands firm
PTC News Desk: The United States will impose a 50% tariff on Indian goods starting at 12:01 am (EDT) or 9:31 am (IST), escalating tensions between Washington and New Delhi.
According to the Global Trade Research Initiative (GTRI), these tariffs will affect Indian exports worth $60.2 billion. Labour-intensive industries such as textiles, gems, jewellery, shrimp, carpets, and furniture may see shipments drop by as much as 70%, impacting millions of workers. The duties will cover about 66% of India’s exports to the US, which stood at $86.5 billion in FY 2025. If the tariffs remain in place, exports could fall to $49.6 billion next year, with competitors like China, Vietnam, and Mexico poised to capture the market share.
The Trump administration has made it clear there will be no delay in implementing the levies and has released a draft notification confirming an additional 25% duty on top of existing tariffs. President Donald Trump stated that these measures aim to pressure Russian President Vladimir Putin into negotiating with Ukraine. He also claimed to have personally urged Indian Prime Minister Narendra Modi to agree to a ceasefire with Pakistan, warning that failure to do so could result in steep tariffs if tensions escalated.
According to Trump, he cautioned PM Modi that Washington would hold back trade agreements if hostilities escalated. "I said, I don’t want to make a trade deal with you. You guys are going to end up in a nuclear war," he said. "Call me back tomorrow, but we’re not going to do any deals with you, or we’re going to put tariffs on you that are so high, your head’s going to spin."
Recounting the exchange, Trump told reporters that his intervention was blunt. "I am talking to a very terrific man, Prime Minister of India, Narendra Modi. I said what’s going on with you and Pakistan? The hatred was tremendous," Trump said.
- With inputs from agencies
