The Trump administration is formally signaling, via a draft notice, that a 50% tariff will be imposed on Indian products starting August 27, 2025. The tariff hike comes in response to India’s continued imports of Russian oil and is framed as leverage to push India to reduce its purchases, with the Department of Homeland Security confirming enforcement at 12:01 a.m. Eastern Daylight Time.
The draft notice published outlines that Indian goods “entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT on August 27” will face the new 50% duty. This doubles an existing 25% levy and covers a broad basket of exports including textiles, apparel, gems and jewelry, auto parts, electronics, and seafood.
Reason for Tariff
According to the Trump administration, India’s purchases of discounted Russian oil undermine U.S. sanctions on Russia and efforts to broker an end to the war in Ukraine. President Trump’s intent is to pressure India by making its exports to the U.S. less competitive, thereby encouraging New Delhi to scale back oil imports from Russia.
India exported goods worth $86.5 billion to the U.S. last year, making America its largest export market. Analysts project Indian shipments may decline 40–50% due to the tariffs, potentially slowing India’s growth by up to 0.4 percentage points in the coming year. Indian Prime Minister Narendra Modi has pledged government support for small entrepreneurs and farmers in the face of these tariffs.
