There were expectations that the United States will not slap India with additional 25% tariff making a total of 50% tariff on Indian products. The expectations arose after the meeting between Russian President Vladimir Putin and US President Donald Trump. After the meeting, Trump had hinted that for the time being, the US may not levy addition tariffs on India.
However, it seems like the negotiations between America and India have hit a stalemate as the US administration has decided to raise tariffs on Indian imports, with an additional 25 per cent duty for purchasing Russian oil, which is set to take effect from August 27.
This decision will push the overall tariffs to 50 per cent on Indian goods entering the US.
The Department of Homeland Security (DHS) confirmed that the new measures will take effect from “12:01 am Eastern Daylight Time on 27 August as per their latest draft notice”.
According to the draft notice issued by the DHS, the duties target India under the policy of countering “threats to the United States by the government of Russian Federation”.
“The duties set out in the Annex to this document are effective with respect to products of India that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am Eastern Daylight Time on August 27, 2025,” it stated.
“To address that unusual and extraordinary threat to the national security and foreign policy of the United States, Executive Order 14066 prohibited, among other things, the importation into the United States of certain products of Russian Federation origin, including crude oil; petroleum; and petroleum fuels, oils, and products of their distillation,” the notice read.
A wide range of Indian goods is covered under the new decision. The document made clear that the tariffs apply to any items arriving for use in the United States or released from warehouses after the cut-off time.
Notably, the US has exempted a few Indian goods from the tariff list. As per New Indian Express,, a few items like steel, copper and aluminium and sectors like pharmaceuticals, electronics and automobiles, passenger vehicles like SUV and sedan, have been exempted.
The tariff will cover a wide spectrum of Indian exports, including textiles, gems and jewellery, leather, machinery, furniture and marine products.
As per Deccan Herald (DH), India’s merchandise exports to the US stood at USD 87 billion in Financial Year 2025. Out of the total exports to the US, India's Electronic goods accounted for largest share of exports at 17.6 per cent.
India's pharma exports to US have also been excluded from the tariffs. As per DC, US accounts for nearly 35 per cent of India's pharma products. India has one of the highest numbers of US FDA-approved manufacturing facilities catering to the generic medicine requirements of the US.