Washington/New Delhi, August 26: The United States will enforce a steep 50 per cent tariff on Indian goods starting August 27, a move expected to impact over USD 48 billion worth of exports.
According to a draft order issued by the US Department of Homeland Security, the increased levy will apply to Indian products “entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am EDT, August 27, 2025.”
The new tariff comes on top of a 25 per cent duty already imposed on Indian imports on August 7. Washington had announced the second round of 25 per cent tariffs as part of punitive measures against New Delhi for purchasing Russian crude oil and military equipment.
With this decision, most Indian goods entering the US will now face 50 per cent import duties, with limited exceptions. Trade analysts warn the move could deal a serious blow to India’s export sector, particularly in textiles, engineering goods, pharmaceuticals, and IT services, which make up a large share of shipments to the American market.
The development marks a new low in India-US trade relations and comes amid broader tensions over New Delhi’s energy and defense partnerships with Moscow.