27 August,2025 12:41 PM IST | Washington | Agencies
Men paint handcrafted products at a workshop in Varanasi; Indian exports to the US are likely to be hit after US President Donald Trump’s additional tariffs take effect today. PIC/AFP
The US Customs and Border Protection (CBP) has issued a draft notice detailing plans to implement an additional 25 per cent tariff on Indian products from August 27, impacting more than $48 billion worth of India's exports to the US. The total tariff on Indian goods entering the US market, with certain exceptions, will now be 50 per cent.
According to the notice, the additional tariffs are being imposed to give effect to US President Donald Trump's August 6 Executive Order that specified a new rate of duty on imports Indian products.
The draft notice, scheduled to be published on August 27, 2025, states that the Secretary of Homeland Security has determined it necessary to modify the Harmonised Tariff Schedule of the United States (HTSUS) in line with the executive order. The CBP further clarified that the new duties will come into effect on August 27, 2025, from 12.01 am (EDT), and will apply to all products of India that are either entered for consumption in the US or withdrawn from warehouses for consumption.
Earlier on July 30 US President Donald Trump announced an additional 25 per cent tariffs on India. He stated that "Remember, while India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high⦠among the highest in the World, and they have the most strenuous and obnoxious non-monetary trade barriers of any country," Trump said in a post on Truth Social.
"Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of energy, along with China, at a time when everyone wants Russia to stop the killing in Ukraine⦠India will therefore be paying a tariff of 25 per cent, plus a penalty for the above," he said.
Prime Minister Narendra Modi said his government will find a way out. Indian trade bodies, meanwhile, expressed disappointment over Trump's decision, calling it a setback for the Indian export market while also highlighting potential opportunities for export diversification and supply chain realignment.
US-India trade
The US is India's largest trading partner since 2021-22. In 2024-25, the bilateral trade in goods stood at $131.8 billion ($86.5 billion exports and $45.3 billion imports). India's exports amounted to $91.2 billion in 2024.
Sectors affected...
Textiles, clothing, gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery
Safe sectors...
Pharma, energy products and electronic goods
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