The United States has raised tariffs on Indian goods as an extra 25% hike is set to lift the total amount to 50%. A notice about the imposition of the additional 25% tariff has been formally published by the Donald Trump administration in the United States. The punitive charges are scheduled to take effect on 27th August at 12:01 am (Eastern Daylight Time/EST).
The Department of Homeland Security stated in the notification that the additional taxes were a reaction to “threats to the United States by the Government of the Russian Federation,” and India has been targeted for the same.
President Donald Trump signed Executive Order 14329 on 6th August authorising the move which was laid out in a public notice released by the Department of Homeland Security via U.S. Customs and Border Protection (CBP).
#NewsFatafat | US Slaps Additional 25% Tariff on India Effective 12:01 AM ET, August 27#USTariff #IndiaUSRelations #TradeWar #GlobalTrade #TariffHike #InternationalBusiness pic.twitter.com/3cwCkrHLQY
— ET NOW (@ETNOWlive) August 26, 2025
A wide variety of Indian goods mentioned in the notice’s annexe will be subject to the tariffs. Any product that arrives for use or are removed from warehouses after the deadline will be subject to the levies.
Additionally, if a deal does not materialise, US President Donald Trump announced that he would put more penalties on Moscow or more tariffs on nations that trade with Russia. He threatened that there would be “very big consequences” in the coming weeks in the absence of any progress. Notably, the US has so far refrained from enforcing such sanctions against China and other significant buyers of Russian oil.
Trump first announced a 25% duty on Indian goods but he subsequently declared that he would increase it to 50% by adding 25% more as a penalty for purchasing Russian oil which he insisted “funded war in Ukraine.” He had set the implementation date for 27th August. Interestingly, his government has been accusing India and the “wealthiest Indian families” of profiting from Russian oil while continually defending Beijing.
“For Modi, interests of farmers, cattle rearers and small-scale industries are paramount. The pressure on us may increase, but we will bear it all,” Prime Minister Narendra Modi responded after the development. External affairs minister S Jaishankar also strongly endorsed India’s energy decisions, asserting that New Delhi would keep making choices that serve its strategic autonomy and national interest.
Dr Jaishankar pointed out that the US tariff issue is being misrepresented as “oil dispute”. He pointed out that bigger importers like China and European countries have not received the same criticism as India for buying Russian oil.
The ties between New Delhi and Washington started to deteriorate when Trump attempted to take credit for mediating a ceasefire between India and Pakistan during “Operation Sindoor” which the Modi government correctly denied.
