India Faces 50% Tariff on Exports to the USA Amid Trade Stalemate

Introduction to the New Tariff

India has now implemented a 50% tariff on products exported to the United States. This decision comes as trade negotiations between the Trump administration and India remain at a standstill. To mitigate the impact of these punitive tariffs, the Indian government is exploring various strategies. The new tariff affects goods worth $48.2 billion exported to the U.S. and took effect at 9:30 AM on Wednesday. Prime Minister Modi has stated that he will not compromise under pressure, while the Congress party has been critical of the Modi administration.

Congress Criticism Following Tariff Implementation

Following the introduction of the 50% tariff by the U.S., the Congress party targeted Prime Minister Narendra Modi, claiming that the mega partnership formula with the U.S. has turned into a significant headache for the country. Party General Secretary Jairam Ramesh asserted that the American tariffs would predominantly impact sectors such as textiles, gems and jewelry, leather, seafood, and engineering.

Impact on Indian Exports and Labor

Ramesh took to social media platform 'X' to express that the dual tariffs imposed by Trump will undoubtedly affect India's labor-intensive exports, particularly in textiles, gems and jewelry, leather, seafood, and engineering. He also noted that within the last 24 hours, the U.S. Commerce Secretary has criticized the H1B visa system, which has primarily benefited Indian IT professionals. Ramesh highlighted that this has been a key demand of President Trump's 'Make America Great Again' (MAGA) campaign, which Modi referenced in February as part of his own formula of 'MAGA + MEGA = MEGA'.

He concluded by stating that the mega partnership created by Modi has now become a significant challenge for India. During his visit to the U.S. earlier this year, Modi introduced the concept of 'Make India Great Again' (MEGA), suggesting that both approaches could lead to a prosperous 'mega' partnership and elevate bilateral relations.