Additional 25 Per Cent US Tariffs on Indian Goods Come Into Effect Today, Raising Total Duties To 50 Per Cent

The United States implemented an extra 25 per cent tariff on Indian imports on Wednesday (27 August), bringing total tariffs to 50 per cent, after New Delhi refused to back down from its purchase of Russian oil, India Today reported.

The new tariffs became effective at 9.31 am on Wednesday.

Experts caution that the increased duties could hurt Indian exporters and moderately slow overall economic growth.

According to the Global Trade Research Initiative (GTRI), Indian exports worth $60.2 billion may be affected by the US tariffs.

Sectors such as textiles, gems and jewellery, shrimp, carpets, and furniture could face shipment declines of up to 70 per cent, putting millions of jobs at risk.

About 66 per cent of India’s US-bound exports, totaling $86.5 billion in FY 2025, are subject to the tariffs.

Continued duties could reduce exports to $49.6 billion in 2026, while competitors such as China, Vietnam, and Mexico may capture market share in the US.

Exporter associations told news agency Reuters that the tariff increases could affect roughly 55 per cent of India’s merchandise exports to the US, valued at $87 billion, creating opportunities for rivals like Bangladesh, China, and Vietnam.

Industries likely to bear the brunt include textiles, apparel, gems and jewellery, shrimp, and leather goods.

Pharmaceuticals, smartphones, and steel are expected to face limited impact from the tariffs, due to tariff exemptions and strong domestic demand in India.

The heightened tariffs may, however, strain strategic relations.

The US has sought closer ties with India through the Quad, a security alliance with Australia and Japan aimed at countering China.

Earlier in 2025, India indicated willingness to strengthen the Quad’s defence agenda, but current trade tensions risk undermining these efforts.

US President Donald Trump had signed an executive order on 6 August, imposing an extra 25 per cent tariff on Indian goods, raising total duties to 50 per cent.

The order stipulated that the tariffs would take effect 21 days later, on 27 August.

India has not announced any changes to its Russian oil purchases. The Indian envoy in Moscow stated that India will continue sourcing oil from the “best deal” available, despite growing US tariffs on Indian exports.

"Our objective is energy security of 1.4 billion people of India and India’s cooperation with Russia as well as several other countries has helped to bring about stability in the global oil market," he added.

The US officially issued a notice on Tuesday, implementing an additional 25 per cent tariff on Indian imports effective 12:01 am EDT on 27 August (9.31 am IST).

The notice, issued by the Department of Homeland Security through US Customs and Border Protection (CBP), implements President Donald Trump’s Executive Order 14329, signed on 6 August.

The Ministry of External Affairs has previously called the tariffs "unfair, unjustified, and unreasonable," warning that India will take "all necessary steps to protect its national interests."

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