3 hrs ago
Indian Exporters Warn US Tariffs Could Halt Shipments
The United States passed a law that could make Indian products much more expensive in America.
The law allows tariffs of up to 100% on countries that buy Russian oil and gas.
India is one of the countries that could be affected.
Indian exporters say such high tariffs could make American buyers stop ordering their goods.
They are also worried because they do not yet know which products will face the tariffs.
The final effect will depend on the rate, product coverage, and timing.
A trade group said India should not give up its energy choices just to receive temporary tariff relief.
India and the United States trade many goods and services, so exporters fear the policy could damage their business relationship.
President Donald Trump signed a law authorizing tariffs of up to 100% on countries buying Russian oil and gas, including India.
Indian exporters warned that high US duties could halt shipments and create uncertainty in bilateral trade.
The law takes effect within 30 days and requires consideration of countries among the five largest buyers of Russian crude or natural gas.
The potential impact depends on the final tariff rate, affected products, implementation schedule, and duties imposed on competitors such as China.
India-US merchandise trade reached $140.76 billion in 2025-26, while India’s exports to the US totaled $87.3 billion.
- Who
- Indian exporters, trade organizations, the United States, and President Donald Trump are involved.
- What
- A US law authorizes possible tariffs of up to 100% on goods from countries buying Russian oil and gas, potentially affecting Indian exports.
- Where
- The measure concerns goods entering the United States from countries including India.
- When
- Donald Trump signed the law on September 18; it is scheduled to take effect within 30 days of signing.
- Why
- The law is intended to sanction Russia and Iran and may pressure major buyers of Russian energy, including India, to reduce those purchases.
Exporter and Indian Trade Concerns
US Sanctions and Pressure Approach
Effect of higher tariffs
Exporter and Indian Trade Concerns
Indian exporters say tariffs of up to 100% could make exports unaffordable for US importers, halt shipments, and disrupt bilateral business.
US Sanctions and Pressure Approach
The law authorizes steep duties as part of sanctions targeting Russia and Iran and countries that are major buyers of Russian energy.
India’s energy policy
Exporter and Indian Trade Concerns
The Global Trade Research Initiative says India should not trade its energy security for temporary tariff relief or let US tariff threats determine its policy.
US Sanctions and Pressure Approach
Supporters of the measure could use tariff pressure to encourage India to reduce purchases of Russian oil and potentially accept changes in its trade relationship with the United States.
Business response
Exporter and Indian Trade Concerns
Exporters want clarity on tariff rates, product coverage, timing, and treatment of competitor countries before making business decisions.
US Sanctions and Pressure Approach
The US measure gives Washington authority to determine duties based on countries’ Russian oil and gas purchases, with implementation details still pending.
Key facts
- Potential tariff
- Up to 100% on goods from affected countries
- Affected country
- India is identified as a buyer of Russian oil and gas that could face the measure
- Implementation
- The law comes into effect within 30 days of presidential signing
- India-US trade
- Bilateral trade grew to $140.76 billion in 2025-26
- Indian exports to US
- India exported $87.3 billion in goods to the US in 2025-26
- Major Indian exports
- Drug products, telecom instruments, gems, petroleum products, auto components, jewelry, garments, and iron and steel
- Export exposure
- Farida Group Chairman Rafeeq Ahmed said 65% of his company’s exports go to the United States
Quotes
Sharad Saraf
Mumbai-based exporter and CMD of Technocraft Industries
“The clear impact can be assessed only after we have the details. We also have to see how much duty will be imposed on our competitor nations like China. We are quite worried about the new law because it is creating a lot of uncertainty in the otherwise healthy trade relations. We are not able to take decisions.”
telegraphindia.com
“We are very worried and concerned. If the US imposes high tariffs, it will completely halt our exports to the US. No importer can afford this high level of tariffs.”
telegraphindia.com
Sources
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