US draft notice imposes 50% tariffs on India

NEW DELHI: The United States has issued a formal notification imposing additional tariffs on a wide range of Indian goods, effectively doubling the duties to 50%, starting August 27.

According to a notice from the US Customs and Border Protection (CBP), an extra 25% duty will be added to existing tariffs on several key Indian exports. These include textiles, gems and jewellery, leather goods, machinery, furniture, and marine products.

However, certain sectors—such as pharmaceuticals, electronics, and automobiles (including SUVs and sedans)—have been exempted. Industrial metals like steel, copper, and aluminium are also not affected.

The move comes under Executive Order 14329, signed by US President Donald Trump on August 6, 2025, titled “Addressing Threats to the United States by the Government of the Russian Federation.” The order is part of a broader crackdown on countries maintaining strong trade ties with Russia, particularly in oil.

CBP clarified that starting 12:01 a.m. EDT on August 27, the new tariffs will apply to all Indian-origin goods either entering the US market or being withdrawn from bonded warehouses.

Exporters across India have raised concerns, warning that the steep duties could eat into margins and slow down shipments to the US—India’s largest export destination for many product categories. Finding alternate markets with similar demand is expected to be difficult for several industries.

The Indian Commerce Ministry has responded, assuring exporters that it will explore all possible ways to support them amid rising global uncertainties. However, the Indian government has not announced any retaliatory action against the US so far.

The move follows President Trump’s announcement on July 30, where he imposed a 25% tariff on Indian goods as part of a broader trade offensive affecting over 90 countries. Just a week later, on August 6, he introduced an additional 25% “penalty” citing India’s continued imports of Russian oil.

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On Monday, Prime Minister Narendra Modi addressed concerns about the impact of the tariff hike. In a public speech, he reassured small traders, farmers, and livestock rearers that the government would safeguard their interests.

“We will bear any pressure. Modi will never allow you to be harmed,” he declared, signaling that India would remain resolute in the face of US economic measures.