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US imposes 50% tariffs on India over ties with Russia

August 8, 2025

In a push to pressure India into breaking ties with Russia over its ongoing invasion in Ukraine, US President Donald Trump is imposing tariffs of a staggering 50% on Indian goods. This has shaken businesses in both India and the US.

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Donald Trump's tariffs are already impacting small businesses in the US, especially those importing goods from India. Indian-American business owner Dhiraj Vitha fears his jewelry business may shut down due to a 50% tariff on gold jewelry. Grocery store owner Dhanji Hirani also reports declining sales and slim margins, making it hard to stay open.

In India, exporters worry that US buyers will turn to cheaper markets, as Indian goods become less competitive due to the tariffs. The US imposed these tariffs in response to India buying oil from Russia, which it sees as undermining sanctions. This puts Indian Prime Minister Narendra Modi in a difficult position, caught between maintaining ties with Russia and avoiding a trade conflict with the U.S.