The Trump administration has announced that it will implement increased tariffs on Indian goods, beginning after 12:01 a.m. on August 27. A public notice specifies an additional 25 percent tariff on Indian products entering the U.S. market or being withdrawn from warehouses after that time. The US claims this action is a consequence of India’s continued import of Russian oil, which the US argues is funding the war in Ukraine. India has rejected this accusation.
Executive Order 14329, issued in August 2025, describes the tariffs as a measure to address the national emergency related to India’s import of Russian oil.
The tariffs will be implemented at 12:01 AM Eastern Daylight Time (EDT) on August 27. In India, this will be 9:31 AM Indian Standard Time (IST) on the same day. The 50% tariffs will apply to Indian goods starting at 9:31 AM IST.
The US is the biggest market for Indian exports. The new tariffs could render Indian goods more expensive and less competitive. Sectors such as gems and jewelry, auto parts, medicines, and electronics are at risk. Seafood exporters are concerned about potential losses. In the fiscal year 2024, India exported goods worth $86.5 billion to the US. Analysts forecast a substantial decrease in India’s exports as a result of the tariffs.
To address the economic challenges, a high-level meeting is scheduled at the Prime Minister’s Office on August 26, 2025, under the leadership of Principal Secretary P.K. Mishra. Senior officials will focus on strategies to reduce the impact on India’s exports to the US. The discussions will center on targeted support for small and medium enterprises rather than providing broad subsidies. The government is also considering exporters’ requests for an Emergency Credit Line Guarantee Scheme. The government is considering policy options that focus on providing targeted support to specific industries. The government aims to protect export-oriented units and small and medium enterprises, as these sectors are most vulnerable to external shocks.
The government is concerned that the 50% tariff could reduce profit margins, disrupt supply chains, and undermine competitiveness in crucial sectors.
Prime Minister Narendra Modi has called for promoting local goods and safeguarding national interests. The tariffs threaten to lower India’s GDP growth, potentially dropping it below 6% this year.