Indian goods to face 50pc tariff in US from Aug 27; exports of USD 48 bn to be hit

Washington/New Delhi, Aug 26 (PTI) The United States has issued a draft notice detailing plans to implement an additional 25 per cent tariff on Indian products from August 27, impacting more than USD 48 billion worth of India's exports to the US.

The total tariff on Indian goods entering the US market, with certain exceptions, will now be 50 per cent. The US imposed a 25 per cent tariff on India on August 7 and had announced another 25 per cent duties from August 27 as a penalty for buying Russian crude oil and military equipment.

The US Department of Homeland Security, in the draft order published on Monday, said the increased levies would hit Indian products that are “entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time on August 27, 2025”.

The sectors, which would bear the brunt of the high US import duties include textiles, clothing, gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery.

Sectors such as pharma, energy products and electronic goods are out of the ambit of these sweeping duties.

The US draft order further stated that Indian products will be exempt from the new 50 per cent tariff if they were already loaded on a ship and in transit to the US before 12:01 am (EDT) on August 27, 2025, provided they are cleared for use in the country or taken out of a warehouse for consumption before 12:01 am (EDT) on September 17, 2025, and the importer certifies this to US Customs by declaring a special code.

Besides India, Brazil is the only US trading partner which is facing a 50 per cent import duty.

According to the Commerce Ministry, around USD 48.2 billion of India's merchandise exports (based on 2024 trade value) to the US will be subject to additional tariffs.

White House Press Secretary Karoline Leavitt earlier this month said US President Donald Trump imposed sanctions on India to bring an end to the conflict between Russia and Ukraine. US Treasury Secretary Scott Bessent has accused India of profiteering by reselling Russian oil.

On August 6, India stated that the US action was "unfair, unjustified and unreasonable".

After the new levy, India's competitors will be better placed in the US market due to lower duties. India's competitors include Myanmar (40 per cent US tariff), Thailand and Cambodia (both 36 per cent), Bangladesh (35 per cent), Indonesia (32 per cent), China and Sri Lanka (both 30 per cent), Malaysia (25 per cent), Philippines and Vietnam (both 20 per cent). PTI RR CS MR MR