US Draft Notice: 50% Tariffs on Indian Goods From August 27
US imposes 25% additional tariff on Indian goods.
The United States has escalated trade tensions with India by issuing a draft notice detailing plans to impose an additional 25% tariff on Indian products, effective from 12:01 AM EDT on August 27, 2025. The Department of Homeland Security, through US Customs and Border Protection (CBP), announced the measure on Monday, implementing President Donald Trump’s Executive Order 14329, signed on August 6. This new tariff, combined with an earlier 25% duty effective from August 7, raises the total tariff on Indian goods to 50%, one of the highest rates imposed on any US trading partner.
The increased levies will apply to Indian products “entered for consumption, or withdrawn from warehouse for consumption” after the specified deadline. However, exemptions are provided for goods already in transit before August 27, provided they are cleared for use or removed from warehouses by September 17, 2025, and importers declare the special HTSUS code 9903.01.85. The move targets India’s continued purchase of Russian crude oil, which the US claims indirectly supports Russia’s actions in Ukraine.
On August 7, Trump announced the doubling of tariffs, citing India’s energy trade with Russia, but offered a 21-day negotiation window. White House Press Secretary Karoline Leavitt stated that the tariffs aim to pressure India to help end the Russia-Ukraine conflict. US Treasury Secretary Scott Bessent accused India of “profiteering” by reselling Russian oil, a claim India strongly disputes.
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India’s Ministry of External Affairs condemned the tariffs as “unjustified and unreasonable,” emphasizing that its oil imports are driven by market factors and the energy needs of its 1.4 billion population. New Delhi has vowed to take all necessary measures to protect its national interests and economic security, with Prime Minister Narendra Modi asserting that India will withstand external pressures through its Aatmanirbhar Bharat campaign.
The tariffs threaten India’s $87 billion export market to the US, impacting sectors like textiles, gems, and electronics. As trade talks continue, with a US delegation expected in New Delhi on August 25, India is exploring export incentives and diversification to mitigate the economic fallout.
Also Read: Trump Threatens "Great Consequences" if Russia, Ukraine Skip Talks
