United States has Tariffed India by 50%.

President Donald Trump on Wednesday announced sweeping and substantial tariffs on India, one of America’s most important trading partners. In addition to a 25% tariff that is set to go into effect Thursday, Trump also announced an additional 25% tariff on India that will go into effect later this month as punishment for importing Russian oil and gas. Those combined penalties would bring the total tariff on goods imported from the world’s fifth-largest economy to a whopping 50% – among the highest the US charges.

The order finds India is “currently directly or indirectly importing Russian Federation oil”, and says it is “necessary and appropriate” to apply the new 25% tariff on Indian goods. This comes hours after Trump’s foreign envoy Steve Witkoff concluded a meeting in Moscow with Russian President Vladimir Putin.

The US goods trade deficit with India has nearly doubled since Trump’s first term, as India has become a significantly more important American trading partner. The trade gap widened as both countries roughly doubled the amount of imported goods from one another. It also came as Trump ramped up tariffs on China, which former President Joe Biden left in place, Incentivising American businesses to seek out alternative production locations like India.

Apple, for instance, moved much of its iPhone production to India over the past few years. Smartphones are exempt from both the tariffs set to take effect Thursday as well as the additional 25% tariff later this month. However, on Wednesday, Apple has announced to invest another $100 Billion in the United States in addition to the $500 Billion announced earlier this year.

Last year, the US imported $87 billion worth of goods from India, according to Commerce Department data. India imported $42 billion worth of goods from the US, thus giving rise to the ($87 – $42=) $45 billion Trade Deficit.

The top goods the US received from India last year included pharmaceuticals, communications equipment, such as smartphones, and apparel. Trump has been threatening a separate across-the-board tariff on pharmaceuticals, which would not be stacked on top of the 50% tariff on Indian goods if that indeed takes effect.

Meanwhile, the top American exports to India were various oils and gases, chemicals and aerospace products and parts. Were India to slap retaliatory tariffs on American goods these industries could suffer.

Team Maverick