Exports of USD 48 billion to be hit as Indian goods to face 50 per cent tariff in US from August 27

The total tariff on Indian goods entering the US market, with certain exceptions, will now be 50 per cent. File Pic/AFP

The United States is set to impose an additional 25 per cent tariff on Indian goods from August 27, effectively raising the total duty to 50 per cent on a wide range of exports. It is estimated that the tariffs will affect over USD 48 billion worth of Indian exports to the American market, reported the PTI.

It follows a previous 25 per cent levy that came into effect on August 7.

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The total tariff on Indian goods entering the US market, with certain exceptions, will now be 50 per cent. The US imposed a 25 per cent tariff on India on August 7 and had announced another 25 per cent duties from August 27 as a penalty for buying Russian crude oil and military equipment.

The US Department of Homeland Security, in the draft order published on Monday, said the increased levies would hit Indian products that are 'entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time on August 27, 2025'.

Sectors most affected with the US tariffs on India will be textiles, clothing, gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery, according to the PTI.

The sectors such as pharma, energy products and electronic goods are out of the ambit of these sweeping duties.

Besides India, Brazil is the only US trading partner which is facing a 50 per cent import duty.

According to the Commerce Ministry, around USD 48.2 billion of India's merchandise exports (based on 2024 trade value) to the US will be subject to additional tariffs.

After the new levy, India's competitors will be better placed in the US market due to lower duties. India's competitors include Myanmar, Thailand and Cambodia, Bangladesh, Indonesia, China and Sri Lanka, Malaysia, Philippines and Vietnam.

Details new tariffs by the US on different countries-

- Myanmar faces a 40% tariff

- Thailand and Cambodia: 36%

- Bangladesh: 35%

- Indonesia: 32%

- China and Sri Lanka: 30%

- Malaysia: 25%

- Philippines and Vietnam: 20%

Earlier this month, White House Press Secretary Karoline Leavitt stated that the sanctions were aimed at increasing pressure on Russia by penalising its trading partners. US Treasury Secretary Scott Bessent accused India of "profiteering" through the re-sale of discounted Russian oil.

India's Ministry of External Affairs had responded on August 6, calling the tariffs "unfair, unjustified, and unreasonable."

(with PTI inputs)