U.S. President Donald Trump’s decision to raise tariffs on India to 50 percent has stirred unease in one of America’s fastest-growing consumer markets. The penalties, linked to India’s continued purchase of Russian oil, took effect on August 27.
New Delhi criticized the move as “unfair, unjustified and unreasonable,” signaling it would act to protect national interests. The dispute comes as Prime Minister Narendra Modi continues to promote “swadeshi” and his “vocal for local” campaign to boost homegrown products.
The financial stakes for U.S. companies are large. PepsiCo India reported nearly $988 million in revenue for fiscal year 2024, with $422 million to $482 million invested in the past three years. McDonald’s operator Westlife Foodworld earned about $288 million.