Guwahati: The United States has outlined plans to implement an additional 25% tariff on Indian products, set to take effect from August 27, 2025, as part of a broader trade escalation announced by President Donald Trump earlier this month.
In a draft order released on Monday, the Department of Homeland Security specified that the higher duties will apply to Indian goods “entered for consumption, or withdrawn from warehouse for consumption” starting 12:01 am EDT on August 27.
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President Trump had earlier doubled existing tariffs on Indian imports to 50% in response to India’s continued purchase of Russian crude oil. However, the administration provided a 21-day window from the announcement date, August 7, to allow for negotiations.
The new tariff, on top of the 25% duty imposed in late July (effective from August 7), marks a significant escalation in U.S.-India trade tensions.
According to the draft notice, Indian products shipped before 12:01 am EDT on August 27 and arriving in the U.S. before September 17 could avoid the increased tariff, provided importers use the special code HTSUS 9903.01.85 and certify compliance with customs rules.
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Responding to the developments, Prime Minister Narendra Modi on Monday reaffirmed his commitment to protecting Indian farmers, small industries, and cattle-rearers.
Without naming the U.S., he cautioned that global politics is increasingly driven by self-interest and economic pressure.
“No matter how much pressure comes, we will bear it. But we will never compromise on the interests of our farmers, small entrepreneurs, or cattle-rearers,” Modi said, invoking swadeshi values and citing Mahatma Gandhi as inspiration.
The U.S. administration maintains that the sanctions aim to pressure India into reducing ties with Russia. Earlier this month, White House Press Secretary Karoline Leavitt stated that the sanctions serve to support efforts to end the Russia-Ukraine conflict.
U.S. Treasury Secretary Scott Bessent also accused India of “profiteering” by reselling Russian oil, a claim India has strongly pushed back against.
Calling the tariffs “unjustified and unreasonable,” New Delhi stressed that it, like any major economy, will take all necessary steps to protect its national interests and economic sovereignty.