- US sent an official notice confirming plans to impose a sharp 50 percent tariff
- Imported items already in transit before this date may receive exemptions.
- The additional duties threaten to strain U.S.–India trade ties
The United States has issued an official notice confirming plans to impose a sharp 50 percent tariff on imports from India, effective 12:01 a.m. EST on August 27. The additional 25 percent tariff will be levied under executive order authority, targeting Indian products entering U.S. consumption or removal from warehouses on or after the deadline. Imported items already in transit before this date may receive exemptions.
The move comes as the U.S. administration seeks to pressure countries, including India, that continue purchasing Russian oil amid delayed peace talks with Ukraine.
India has pushed back firmly, criticizing the tariffs as unfair and unjustified, stressing that its energy decisions are based on strategic autonomy rather than geopolitics.
Prime Minister Narendra Modi, speaking at an event in Ahmedabad, declared that the government will steadfastly protect the interests of farmers and small-scale industries, saying the country is prepared to bear external pressure.
The additional duties threaten to strain U.S.–India trade ties. With $87 billion in annual exports potentially affected, key sectors such as pharmaceuticals, gems and jewellery, garments, and petrochemicals face mounting risks.
India has indicated it remains open to dialogue, though previous trade negotiations collapsed over differences on agricultural and dairy market access and India’s continued imports of Russian oil.