US to impose 50% tariffs on Indian exports from Aug 27, 2025. Key sectors like textiles, gems, machinery, and seafood face big losses. Photo/White House.
The United States on Monday laid out plans to impose a 50 percent tariff on products imported from India, reaffirming an earlier announcement made by President Donald Trump. The move was outlined in a draft notice issued by the Department of Homeland Security. The notice confirmed that the higher levies will apply to Indian products “that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on August 27, 2025.”
This step is the clearest indication yet that the White House intends to press ahead with the tariff hike as diplomatic efforts to broker peace between Russia and Ukraine show little progress.
Earlier this month, President Trump had declared his intention to double tariffs on Indian goods from 25 percent to 50 percent. The measure specifically targets Indian purchases of Russian oil, with the stated aim of curbing Moscow’s energy trade. Trump had set an August 27 deadline for the policy to take effect.
The Indian government has sharply criticized the secondary tariffs, calling them unfair and detrimental to its national interests.
Prime Minister Narendra Modi, addressing a public gathering in Ahmedabad on Monday, reiterated that India would not yield to external pressure.
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“For Modi, interests of farmers, cattle rearers and small-scale industries are paramount. The pressure on us may increase, but we will bear it all,” he said while launching multiple civic projects in the city.
According to the think tank Global Trade Research Initiative (GTRI), the increased duties are expected to make Indian goods significantly more expensive in the US market, potentially cutting US-bound exports by 40–50 percent.
“The tariffs are expected to make Indian goods far costlier in the US, with potential to cut US-bound exports by 40–50 per cent,” GTRI stated.
Although tariffs are paid by importers in the US, the higher costs will directly impact Indian exporters as demand for their products declines.
In the fiscal year 2024–25, India-US bilateral trade stood at $131.8 billion, with India exporting $86.5 billion worth of goods and importing $45.3 billion from the US.
Textiles and clothing – $10.3 billion
Gems and jewellery – $12 billion
Shrimp – $2.24 billion
Leather and footwear – $1.18 billion
Chemicals – $2.34 billion
Electrical and mechanical machinery – around $9 billion
The GTRI highlighted specific Indian exports that will face steep duty hikes under the new tariff structure:
Organic chemicals – 54% total duty
Carpets – 52.9%
Knitted clothes – 63.9%
Woven clothes – 60.3%
Textiles and made-ups – 59%
Diamonds and gold – 52.1%
Machinery and mechanical appliances – 51.3%
Furniture, bedding, mattresses – 52.3%
Also Read: US Issues Draft Notice To Implement 50% Tariffs On India: All You Need To Know
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
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