Indian traders voice concerns, consider U.S. boycott after tariff hike

U.S. President Donald Trump has warned he will double import duties on Indian products from 25% to 50% in response to New Delhi’s continued purchase of Russian oil. The move, he said, aims to cut Moscow’s funding for its war in Ukraine.

The announcement has unsettled exporters, who warn of falling orders and potential job losses.

India has described the measure as “unfair, unjustified and unreasonable.”

Prime Minister Narendra Modi has sought to counter the impact of higher tariffs by pledging to reduce the goods and services tax (GST) on consumer products, saying the reform would “bring down the tax burden on the common man."

Currently, GST operates under a four-tier system ranging from 5% to 28%. Under the proposed changes, most products would fall into two tiers at either 5% or 18%.

Some traders, however, have voiced strong opposition to the U.S. tariff plan.

Rice commission agent Rumel Singh said the steep duties would woo away buyers from other, more expensive variants of goods.

“India buys oil from Russia, that’s why it is being hit with a 50% tariff rate. If they charge 50% tax on our products, then it is natural that when the tax increases, the customer also knows that he can buy what is cheaper.”

Singh added that the measure was “completely wrong” and said traders may boycott U.S. goods.

"We will also try to send a message to the whole of India that no product from America should be purchased,” he said.

Jewellery shop owner Shubham Jain said higher duties would push up prices.

“Even if it is a single commodity, you have to pay 50% tax on it. Now, even if you have to order a single item, then the tax increases so much that it becomes out of reach,” he said.

Jain warned that customers would likely turn to other markets

“After the 50% tax is imposed, the prices will increase and people will choose the cheaper options. We have been doing this work for a long time, and now there will be a lot of problems.”