US tariffs of 50 per cent took effect on Wednesday on many Indian products, doubling an existing duty as President Donald Trump sought to punish New Delhi for buying Russian oil.

India has criticised the levies as “unfair, unjustified and unreasonable”, with its export body calling on Wednesday for government intervention to assuage fears of heavy job cuts.

Trump has raised pressure on India over the energy transactions, a key source of revenue for Moscow’s war in Ukraine, as part of a campaign to end the conflict.

The latest salvo strains US-India ties, giving New Delhi fresh incentive to improve relations with Beijing.

While Trump has slapped fresh duties on allies and competitors alike since returning to the presidency in January, this 50-per cent level is among the highest that US trading partners face.

Crucially, however, exemptions remain for sectors that could be hit with separate levies — such as pharmaceuticals, computer chips and smartphones.

Industries that have already been singled out, such as steel, aluminium and automobiles, are similarly spared these countrywide levies.

The United States was India’s top export destination in 2024, with shipments worth $87.3 billion.

But analysts have cautioned that a 50-per cent duty is akin to a trade embargo and is likely to harm smaller firms.

Exporters of textiles, seafood and jewellery were already reporting cancelled US orders and losses to rivals such as Bangladesh and Vietnam, raising fears of heavy job cuts.

Ajay Sahai, director general of the Federation of Indian Export Organisations, called for “liquidity support from the government”.

“We want to ensure that even if business stops, we are able to keep workers on the payroll”, he told AFP, saying they were “still optimistic” for trade negotiations.

– ‘Eroded trust’ –

The world’s fifth-largest economy is looking to cushion the blow, with Prime Minister Narendra Modi promising to lower the tax burden on citizens during an annual speech to mark India’s independence.

Modi earlier vowed self-reliance, pledging to defend his country’s interests.

The foreign ministry previously said India had begun importing oil from Russia as traditional supplies were diverted to Europe over Russia’s invasion of Ukraine.

It noted that Washington actively encouraged such imports at the time to strengthen stability in the global energy market.

Russia accounted for nearly 36 percent of India’s total crude oil imports in 2024. Buying Russian oil saved India billions of dollars on import costs, keeping domestic fuel prices relatively stable.

But the Trump administration held firm on its tariff plans in the lead-up to Wednesday’s deadline.

Trump’s trade adviser Peter Navarro told reporters last week that “India doesn’t appear to want to recognise its role in the bloodshed.”

“It’s cozying up to Xi Jinping,” Navarro added, referring to the Chinese president.

Wendy Cutler, from the Asia Society Policy Institute, said India had moved from being “a promising candidate for an early trade deal to a nation facing among the highest tariffs”

Cutler, a former US trade official, said the “high tariffs have quickly eroded trust between the two countries, which could take years to rebuild.

Trump has used tariffs as a tool for addressing everything from what Washington deems as unfair trade practices to trade imbalances.

US trade deficits were a key justification behind his higher duties on dozens of economies taking effect in early August — hitting partners from the European Union to Indonesia.

But the 79-year-old Republican has also taken aim at specific countries such as Brazil over the trial of its former president Jair Bolsonaro, who is accused of plotting a coup.

US tariffs on many Brazilian goods surged to 50 per cent this month, but with broad exemptions.

AFP

US health authorities have suspended the license for the Ixchiq vaccine against the chikungunya virus following reports of “serious adverse events”, the drug’s French maker said Monday.

Ixchiq is one of just two vaccines approved by the US Food and Drug Administration for the mosquito-spread virus, which mainly occurs in tropical and subtropical regions but has recently been discovered to countries worldwide.

French company Valneva obtained US approval for the vaccine in 2023, but reports of side effects have prompted reviews in particular over its use in older patients, including by the European Medicines Agency this year.

“The suspension of the license is effective immediately,” Valneva said of the FDA order issued Friday, citing four additional cases of serious side effects, three of which involved people aged 70 to 82.

“As we determine potential next steps, and as the clear threat of chikungunya continues to escalate globally, Valneva remains fully committed to maintaining access to our vaccine as a global health tool,” chief executive Thomas Lingelbach said in a statement.

Public health experts say chikungunya could be a potential future pandemic threat as climate change pushes the mosquitoes that spread it into new regions.

The symptoms are similar to those of dengue fever and Zika virus, with high fever and severe joint pain that is often debilitating and varies in duration.

Chikungunya is rarely fatal, though there is an increased risk of death for babies and the elderly.

In July, the World Health Organization warned of the risks of a major chikungunya epidemic, calling for urgent action.

The agency said it was picking up the same early warning signs as in a major outbreak two decades ago, which swept across the Indian Ocean before spreading globally and affecting almost half a million people.

So far this year, Europe has seen 27 chikungunya outbreaks, a new record for the continent, the European Centre for Disease Prevention and Control said this month.

AFP

Indonesia and the United States kicked off the annual “Super Garuda Shield” military exercises on Monday, involving more than 4,100 Indonesian and 1,300 US troops alongside forces from nine other allied nations. The drills, running until September 4, are taking place across Jakarta, the western island of Sumatra, and the Riau archipelago.

This year’s exercises, described by US Indo-Pacific Command chief Samuel Paparo as the largest to date, aim to strengthen regional stability and collective deterrence in the Asia-Pacific. While some allies, including the US and Australia, have voiced concerns about China’s growing assertiveness in the region, officials emphasize the drills are not targeted at any specific country.

Paparo highlighted the importance of deep trust and cooperation among partners, stating the exercises prepare participants to deter any attempts to alter the status quo by force.

The programme includes staff exercises, cyber defense drills, and live-fire events, with observers from India, Papua New Guinea, and East Timor attending. Indonesia, maintaining a neutral foreign policy, balances its relationships with both Washington and Beijing amid rising superpower tensions.