What Is a Tariff?
A tariff is a tax imposed by one country on goods imported from another. Governments use tariffs to:
- Protect local industries
- Encourage domestic production
- Raise revenue
- Gain leverage in trade negotiations
Trump’s 50% Tariff on India
In August 2025, U.S. President Donald Trump announced a 50% tariff on Indian exports.
This tariff includes:
- 25% reciprocal duty (to match India’s tariffs on U.S. goods)
- 25% penalty (linked to India’s purchase of Russian oil)
Goods most affected:
- Textiles & Garments
- Gems & Jewellery
- Seafood (shrimp, fish)
- Leather & Carpets
- Furniture & Footwear
Goods exempted:
- Pharmaceuticals
- Electronics
- Steel and some machinery