New York: The additional 25% tariff imposed by US President Donald Trump on India over its purchases of Russian oil came into force on Wednesday, raising the total duty on Indian goods to 50%.
According to a draft order from the Department of Homeland Security (DHS), the new levies apply to Indian products “entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am EDT on August 27, 2025.”
Trump had earlier announced a reciprocal 25% tariff on Indian imports effective August 7, alongside similar measures on about 70 other countries. On the same day, he declared that tariffs on India would be doubled to 50% due to its continued purchases of Russian crude, while allowing a 21-day window for negotiations.
On Monday, Prime Minister Narendra Modi reiterated that India “cannot compromise on the interests of farmers, cattle-rearers, and small-scale industries,” adding, “Pressure on us may increase, but we will bear it.”
The DHS order clarified that shipments already loaded and en route to the US before the August 27 deadline would be exempt, provided they are cleared for use or withdrawn from warehouses before September 17, 2025, and importers declare the special code HTSUS 9903.01.85.
Trade experts warned of serious repercussions. Mark Linscott, Senior Advisor at The Asia Group, described the situation as a “remarkable lose-lose,” saying the once-promising trade partnership now stands strained over Russian oil.
Nisha Biswal, Partner at The Asia Group, noted that the 50% tariff—the highest imposed on any US trading partner—will likely price Indian textiles and garments out of the American market. She added that the move undermines the China+1 strategy by creating uncertainty for firms that relocated production to India.
“The short-term impact will be severe, but a path forward is possible if Modi and Trump directly engage to rebuild trust,” Biswal said.
Basant Sanghera, Managing Principal at The Asia Group, warned the secondary tariffs would damage both India’s manufacturing ambitions and broader US-India economic ties. “Without leader-level engagement, the relationship risks further deterioration,” he cautioned.
Meanwhile, US Treasury Secretary Scott Bessent accused India of “profiteering” from Russian oil resales. New Delhi has dismissed the tariffs as “unjustified and unreasonable.”
