As per the draft notice, the increased tariffs are intended to enforce the President’s Executive Order 14329 dated August 6, titled ‘Addressing Threats to the United States by the Government of the Russian Federation.’ The order introduces a new rate of duty on goods originating from India
US President Donald Trump and Indian PM Narendra Modi. PIC/AFP
The US Customs and Border Protection (CBP) has released a draft notice outlining the implementation of additional duties on Indian imports, following President Donald Trump's announcement to hike tariffs on Indian goods to 50 per cent, ANI reported.
As per the draft notice, the increased tariffs are intended to enforce the President’s Executive Order 14329 dated August 6, titled ‘Addressing Threats to the United States by the Government of the Russian Federation.’ The order introduces a new rate of duty on goods originating from India.
Scheduled for official publication on Wednesday, the notice states that the Secretary of Homeland Security has found it necessary to amend the Harmonised Tariff Schedule of the United States (HTSUS) in accordance with the executive order, ANI reported.
The CBP further clarified that the revised tariffs will take effect from 12.01 am Eastern Daylight Time on Wednesday. From then, the 50 per cent tariff will apply to all Indian-origin goods either entering the US for consumption or being withdrawn from bonded warehouses for consumption.
On July 30, President Trump had announced an additional 25 per cent tariff on Indian goods.
“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 - ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25 per cent, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!” the US President’s post added.
On Monday, Prime Minister (PM) Narendra Modi had responded firmly ahead of the tariff hike set to take effect from Wednesday. Addressing an event in Ahmedabad, PM Modi expressed resolve to withstand the economic pressure being exerted by Washington.
“No matter how much pressure comes, we will keep increasing our strength to withstand it. Today, the Atmanirbhar Bharat Abhiyan is getting a lot of energy from Gujarat and behind this are two decades of hard work...” the PM said.
Industry body FICCI (Federation of Indian Chambers of Commerce & Industry) had earlier expressed disappointment over the decision taken by the US, calling the imposition of 25 per cent tariffs “unfortunate” and warning of a clear negative impact on Indian exports.
Trade bodies across India echoed similar sentiments, describing the move as a major setback for Indian exporters. However, some also viewed it as a potential opportunity for export diversification and global supply chain realignment.
While industry leaders flagged possible short-term disruptions, several remained confident in India's manufacturing resilience, especially in sectors such as pharmaceuticals and medical devices, suggesting that India could weather the storm and explore newer trade partnerships.
(With ANI inputs)
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