New Delhi: The United States has released a draft notice which mentions details of its plans to implement an additional 25 per cent tariff on Indian products from August 27, 2025. The tariffs imposed by the Donald Trump-led administration is expected to impact over USD 48 billion worth of India’s exports to America.
From 27 August, the United States will levy a 50 per cent tariff on Indian goods entering its market, There would be certain exceptions for some items. The Trump administration imposed a 25 per cent tariff on India on August 7, 2025 and announced another 25 per cent tax from August 27 as a “penalty” for buying Russian crude oil and military equipment.
The US has stated that Russia is getting monetary help as India is buying oil from it which is ultimately helping Moscow to continue its war against Ukraine.
As per the draft released by the US Department of Homeland Security, the increased tariffs would hit Indian products that are “entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time on August 27, 2025”.
The Trump administration has maintained that the new tariffs are being levied on India to bring an end to the conflict between Russia and Ukraine. US Treasury Secretary Scott Bessent has accused India of “profiteering” by reselling Russian oil.
Trump tariffs: List of Indian sectors to be impacted
The increased US tariffs would hit animal products, textiles, electrical and mechanical machinery, clothing, shrimp, leather and footwear, gems and jewellery, chemicals. Notably, pharma, energy products and electronic goods will not be affected due to the increased taxes.
Also, the Indian [products which have been already loaded on a ship and in transit to the US before 12:01 am (EDT) on August 27, will be exempted from the new 50 per cent tariff. However, the draft mentioned that the exemption will only be for those products which have the clearance for use in the country or taken out of a warehouse for consumption before 12:01 am (EDT) on September 17, 2025, and the importer certifies this to US Customs by declaring a special code.
Notably, amongst all the trading partners of the US, only India and Brazil are facing a 50 per cent import duty.
The Commerce Ministry has estimated that around USD 48.2 billion of India’s merchandise exports (based on 2024 trade value) to the US will be affected due to the new 50 per cent tariffs.
Reacting strongly to the accusations of the US, India has termed the tariffs as “unfair, unjustified and unreasonable”.