Updated 6 August 2025 at 21:08 IST

Trump Hits India with Highest Tariff in Asia at 50%—How Do Other Nations Compare?

President Trump has imposed a 50% tariff on Indian imports, the highest in Asia, citing India's continued ties with Russia. The move targets key export sectors and raises concerns over worsening trade relations. India is yet to officially respond, while officials assess the impact.

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In a move that could disrupt India’s export economy, US President Donald Trump has imposed a steep 50% tariff on imports from India—making it the highest such duty levied on any Asian country. The announcement, made on August 6, has raised alarm among Indian policymakers and exporters, with concerns mounting over a potential escalation in trade tensions between the two nations.

Retaliation over Russia ties

Trump’s decision is seen as a direct response to India’s continued strategic and commercial engagement with Russia, particularly in the areas of energy and defence. The US President has been vocal about New Delhi’s purchase of discounted Russian crude oil and long-standing military cooperation with Moscow—both viewed as undermining Western sanctions against Russia amid the ongoing war in Ukraine.

Breakup of the charges

The tariff hike was issued through an Executive Order invoking the International Emergency Economic Powers Act (IEEPA) and is set to take effect 21 days from its issuance. The order explicitly ties the 25% additional tariff to the ongoing national emergency regarding Russia’s actions in Ukraine, on top of an existing 25% levy—bringing the total duty on affected Indian goods to 50%.

Also Read: Donald Trump Declares All-Out Trade War With 50% Tariff, Modi's India Will Not Budge | Republic World

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India yet to respond

So far, the Indian government has chosen to stay silent. Government officials have stated that the matter is under review and that a formal response will be crafted in alignment with India’s economic and diplomatic priorities.

India faces highest tariff rates among Asian Peers

With this hike, India now faces the highest U.S. tariff burden in Asia, surpassing even China, which has long been entangled in a tariff war with Washington.

Here’s how the revised tariff landscape stands:

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  • India – 50% on select goods including textiles, industrial components
  • China – 25–30% across $300+ billion worth of goods (legacy of US-China trade war)
  • Vietnam – 10–15%, mainly on electronics and garments
  • South Korea – 8–12%, primarily on steel and auto parts
  • Japan – Minimal tariffs due to existing bilateral agreements


Though narrower in scope than the broader punitive measures imposed on China, the US tariff on India is sharply targeted. It affects sectors with high export volumes and strategic relevance, making it more than just symbolic.

 

Published By : Avishek Banerjee

Published On: 6 August 2025 at 21:08 IST