The United States has announced a fresh round of tariffs on Indian imports, raising duties to 50%. The new measure will come into effect from August 27, 2025, according to a draft notice issued by the U.S. Customs and Border Protection (CBP).
Earlier, a 25% tariff was imposed as part of a broader trade dispute. On July 30, another 25% levy was added. The U.S. connected this second step with India’s energy imports from Russia. The latest increase pushes the total tariff burden on Indian goods to 50%.
Details of the New Tariffs
- Executive Order: 14329
- Title: Addressing Threats to the United States by the Government of the Russian Federation
- Applicability: All Indian products entering the U.S. or withdrawn from bonded warehouses for consumption from 12:01 am, August 27
India’s Response
Prime Minister Narendra Modi reacted strongly. He said his government would protect the interests of small shopkeepers, farmers, and livestock rearers.
“We will bear any pressure. Modi will never allow you to be harmed,” he said.
External Affairs Minister S. Jaishankar called the tariff hike “unjustified and unreasonable.” He stressed that India would not compromise on the interests of its small producers and farmers.
Also Read: The U.S.-India Trade Pivot: A Grand Deal or a Tug-of-War?
Trade and Economic Impact
- Indian trade bodies expressed concern, calling the move a setback for exports.
- However, they noted possible opportunities for supply chain realignment.
- RBI Governor Sanjay Malhotra assured that the central bank would support affected sectors. He added that the overall economic impact is likely to remain minimal.
