NEW DELHI, Aug. 26 — The United States is moving ahead with steep new duties on imports from India, with a draft notice from US Customs and Border Protection (CBP) detailing plans to impose an additional 25 per cent tariff on top of existing rates, effectively raising duties on Indian goods to 50 per cent.
The CBP said the measures, scheduled to take effect at 12:01 a.m. EDT on August 27, are being implemented under President Donald Trump’s Executive Order 14329 of August 6, 2025, titled “Addressing Threats to the United States by the Government of the Russian Federation.” The order directs a modification of the Harmonized Tariff Schedule of the United States (HTSUS) to bring Indian imports under the new duty structure.
The move follows Trump’s July 30 announcement of an additional 25 per cent tariff on Indian goods. At the time, the US President accused India of maintaining some of the “highest tariffs and most strenuous non-monetary trade barriers” in the world, while also criticizing New Delhi’s purchases of Russian oil and defense equipment. “India will therefore be paying a tariff of 25 per cent, plus a penalty… starting August 1,” Trump said in a Truth Social post, insisting the action was necessary to pressure Moscow over the war in Ukraine.
Prime Minister Narendra Modi, addressing a rally in Ahmedabad on Monday, struck a defiant note, saying India would not be deterred by Washington’s measures. “No matter how much pressure comes, we will keep increasing our strength to withstand it,” Modi said. Linking his government’s self-reliance agenda to long-term resilience, he added: “The Atmanirbhar Bharat Abhiyan is getting a lot of energy from Gujarat and behind this are two decades of hard work.”
Industry reaction in India has been largely critical. The Federation of Indian Chambers of Commerce and Industry (FICCI) called the tariff hike “unfortunate” and warned it would have a direct bearing on exports to the US. Other trade bodies also expressed disappointment, describing the move as a setback for Indian exporters, though some highlighted potential opportunities in diversifying markets and realigning supply chains.
Analysts said the immediate impact could be felt in sectors such as textiles, engineering goods, and IT hardware, though India’s strong base in pharmaceuticals and medical equipment may help cushion losses. “Short-term disruptions are likely, but India is resilient enough to forge new trade partnerships,” a senior trade industry leader said.
The 50 per cent tariff regime will apply to all Indian products entered for consumption in the US or withdrawn from bonded warehouses from August 27 onward.
