Washington. Us President Donald Trump on Wednesday doubled the existing customs duty on several Indian products to 50 per cent to put pressure on India over its oil purchases from Russia.

Trump has targeted India as part of a campaign to curb energy trade, a major source of revenue for the Ukraine war. Analysts say the move has added to tensions in US-India relations and given New Delhi a new boost to improve relations with China.

Since becoming president again in 2024, Trump has hit both allies and rivals with high tariffs.

This 50% level is one of the highest faced by U.S. trading partners. However, some sectors such as pharmaceuticals, computer chips and smartphones have been exempted. Steel, aluminium and automobile industries have also been excluded from these customs duties.

The United States is India’s main export market. In 2024 alone, the U.S. accepted $87.3 billion worth of exports. But analysts have warned that the 50 percent customs duty will be similar to a trade ban.

This is likely to hit small companies, especially those working in areas such as textiles, seafood and jewellery. These exporters have already cancelled orders and benefited competitors such as Bangladesh and Vietnam. This has raised fears of job cuts.

India has strongly criticised Washington’s move as “unfair, unjust and impractical”. Prime Minister Narendra Modi, in his annual independence speech, has promised to reduce the tax burden of citizens and move forward on the path of a self-reliant India.

According to the Ministry of External Affairs, India has increased oil imports after Europe removed traditional supplies from Russia. In 2024, 36 per cent of India’s crude oil imports came from Russia. This not only saved India billions of dollars but also helped keep domestic fuel prices stable.

However, the Trump administration showed firmness in its tax plan ahead of Wednesday’s deadline. “India doesn’t want to recognise its role in the war,” his trade adviser Peter Navarro told reporters last week. He described India’s move as “similar to the policy of Chinese President Xi Jinping”.

Wendy Cutler, senior vice president of the Asia Society Policy Institute, said, “Trump is one of the most worrisome events in the tax saga, which has made India a nation directly hit by high customs duties from a promising candidate for an early trade deal.” ’

According to him, while India is showing improvement and openness in the trade sector, Trump’s rapid customs duties have put these efforts into question. “These high customs duties have rapidly eroded trust between the two countries, which may take years to rebuild,” he said.

Trump has used customs duties as a key tool to address unfair trade practices and imbalances. Earlier, high tariffs, which have affected partners from the European Union (EU) to Indonesia, have justified reducing the US trade deficit.

In addition, Trump has also targeted Brazil for the trial of his former president friend Jair Bolsonaro. U.S. tariffs on many Brazilian goods have also been raised to 50 percent this month. However, there are widespread discounts.