US Slaps 10% Tariff on India
India's $40bn Russian oil imports now face 100% tariff threat, sparking rupee stability fears
Story timeline15 updates
India launches online platform to help exporters reach US buyers.
India launches trade portal to help exporters reach US buyers.
India launches online platform to help exporters reach US buyers.
India is negotiating FTAs with 8-9 more countries to cover 75% of global trade.
India aims to cover 75% of global trade with free trade agreements.
India signs terms of reference with Southern African Customs Union to launch trade talks.
India signs terms of reference with Southern African Customs Union to launch trade talks.
India signs terms of reference with SACU to launch trade talks.
India signs terms of reference with SACU to launch trade talks.
India signs terms of reference with SACU to launch trade talks.
India signed terms of reference with Southern African Customs Union (SACU) on Wednesday to launch preferential trade agreement negotiations, seeking tariff relief for automobiles, pharmaceuticals and industrial machinery.
India signs terms of reference with SACU to launch trade talks.
Indian textile exporters are actively diversifying away from the US market, with Raymond Lifestyle targeting Europe for 25% of exports within two years, down from 65% pre-tariff dependence on the US.
Raymond Lifestyle plans to reduce US export dependence to 55-60% and raise Europe’s share to 20-25% within two years.
Story published. India's $40bn Russian oil imports now face 100% tariff threat, sparking rupee stability fears
The United States has imposed new tariffs on 60 countries, including India, elevating the urgency of a bilateral trade deal while threatening to increase India’s import costs. Under the measures, India received a 10% tariff structure, lower than the 12.5% applied to 41 other nations.
The tariffs, introduced following a US investigation into forced labour practices, initially raised India’s effective tariff rate from 1-2% to 11% by June 2025, with a further increase to 35-36% projected by August 2025. A February Supreme Court ruling later reduced the effective rate to around 12%. However, India’s textile and apparel industry did not secure tariff-rate quota exemptions, unlike competitors such as Bangladesh and Vietnam, potentially eroding its export competitiveness.
A separate US sanctions bill, passed by the Senate, now poses additional risks. The legislation threatens a 100% tariff on India’s $40 billion in Russian oil imports, which could disrupt crude supplies and push global oil prices beyond $100 per barrel. Analysts warn this may significantly raise India’s import bill, pressure the rupee, and widen the current account deficit. The outcome of ongoing US negotiations will shape India’s future energy import strategy.
