US tariffs on imports of Indian goods come into effect today
As of today, August 27, 2025, the United States has imposed a tariff of 50 percent on the importation of goods from India. This step is a result of Executive Order 14329, which was signed by the President on August 6, 2025. The order is titled “Addressing Threats to the United States by the Government of the Russian Federation.” The order is linked to issues surrounding Russia but also affects trade with India because of its association with Russia.
A day ago, the U.S. Customs and Border Protection (CBP) published an official notice stating that these additional duties would come into force today. The notice clearly stated that the tariff hikes will cover most of India’s export products.
The drastic increase in tariffs will adversely affect major Indian sectors such as gems and jewellery, textiles, and garments, which are highly dependent on the U.S. market. Exporters are facing increased costs and uncertainty due to these new duties.
Impact Of Tariff On India’s Gems And Jewellery Sector
, In a report by ANIRaju Mangodiwala, President of the Jaipur Jewellery Association, stated that these tariffs will significantly impact India’s gems and jewellery trade, especially exports from Jaipur to the US, which are worth ₹11–12 lakh crores.
“There is an atmosphere of fear in the industry, but we hope the Union Government will find a solution,” he said.
He also suggested that opening trade routes to Russia or other countries could help reduce the impact of US tariffs.
Garment Industry Faces Uncertainty
Zakir, a garment trader, shared his concern about the rising costs due to US tariffs, stating:
“The goods that earlier cost USD 1 million are now costing USD 166 million. It’s becoming impossible to sustain in the market without US business.”
The steep tariff hike has created deep worry among garment exporters, who rely heavily on the American market for business.
Investors Worry Over New US Tariffs On Indian Exports
Investors apprehend the 50 percent tariff on Indian goods and products by the US. The tariff raises costs for Indian firms exporting products like gems, jewellery, textiles, and garments to America.
Like most of these companies rely heavily on the US market for consumers and other trade, and so, rising costs would negatively affect their profitability.
This has also been very visible on the charts of the stock market yesterday, where the market fell heavily, costing sectors, as yesterday was the last day when the deadline would hit, and investors showcased their sentiments by pulling out money. Investors fear this may result in a decline in stock prices and trust in these enterprises. They are closely monitoring the Indian government’s approach to this issue and whether alternative trade options will help reduce the harm caused by these tariffs.
(With Inputs From ANI)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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