Think U.S. Tariffs Are Bad? Wait Till You See India’s!

Whenever the U.S. imposes tariffs, there’s a significant backlash. Indian economists, policymakers, and media commentators quickly label it as unfair, detrimental to global trade, and buased against developing nations. However, one crucial aspect often overlooked is that India itself imposes some of the highest import duties globally.

Importing goods to India can be quite shocking in terms of cost. Customs charges typically range from 50%-100%, making even basic items prohibitively expensive. Recently, someone had to import products worth $300 that were unavailable in India.

By the time the package arrived, an extra 12,000 Rupees was levied— covering GST, customs duty, and a Social Welfare Surcharge. Unlike domestic GST, there’s no Input Tax Credit(ITC) when the seller is overseas, meaning the government retains the entire tax amount.

This sin’t just a rare occurrence; it’s a common experience for anyone trying to bring goods from abroad. The government has imposed hefty tariffs on nearly everything, from electronics and clothing to everyday essentials. While the justification is that these duties protect local industries, they often merely inflate prices for ordinary consumers without significantly enhancing domestic production.

Despite these hefty tariffs, the same experts who criticize U.S. trade policies seldom address India’s own practices. They highlight unfair trade barriers concerning Indian exports but conveniently overlook that India has some of the most stringent import regulations worldwide. The double standards are glaring.

The larger issue at play is the lack of awareness. People are quick to respond to global trade news, yet very few understand how much they are personally paying in hidden duties and taxes. If we are to have a meaningful discussion about fair trade, it must encompass both perspectives—because, at present, the real burden is falling on Indian consumers.