US to enforce 50% tariffs on Indian exports from August 27, sparing pharma and electronics.
New Delhi
The United States on Tuesday issued a draft notice enforcing additional duties on Indian goods, raising the total tariff to 50%, effective from August 27. The measure, implemented through US Customs and Border Protection (CBP), affects a broad range of exports, including textiles, gems and jewellery, leather, machinery, furniture, and marine products. Sectors such as pharmaceuticals, electronics, automobiles, as well as steel, copper, and aluminium, have been exempted.
The move follows President Donald Trump’s Executive Order 14329 of August 6, 2025, “Addressing Threats to the United States by the Government of the Russian Federation.” CBP confirmed that from 12:01 am Eastern Daylight Time on August 27, all Indian products entering US markets or withdrawn from warehouses for consumption will be subject to the higher tariffs.
Indian exporters expressed concern that the steep duties could squeeze profit margins and disrupt shipments to the US, which remains a key market for several sectors. The Commerce Ministry assured stakeholders that the government will explore measures to mitigate the impact, though no retaliatory action has yet been announced.
The 50% tariff follows a previous 25% levy imposed on July 30 as part of a broader trade conflict, with the additional 25% framed as a penalty for India’s continued Russian oil purchases. Prime Minister Narendra Modi pledged government support for farmers, shopkeepers, and small producers, while RBI Governor Sanjay Malhotra assured targeted assistance for affected sectors. External Affairs Minister S. Jaishankar reaffirmed India’s commitment to protecting its domestic interests in ongoing negotiations with Washington.
With tariffs now in effect, Indian exporters face a challenging period ahead, while exempted industries seek to capitalize on their temporary relief.
