US Tariff: The notice states that this tariff is related to the ‘threats made by the Government of the Russian Federation to the United States’, and India has been targeted as part of this strategy. The new tariff may affect India’s exports especially in sectors such as textiles, gems and jewellery.
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Trump Tariff: The US has issued an order to impose an extra tariff of 25% on goods imported from India. This tariff will come into effect from August 27. This extra tariff has been imposed after US President Donald Trump had already doubled the tariff to 50% on India’s purchase of Russian crude oil. According to a draft notice issued by the US Department of Homeland Security on Monday, the extra tariff will apply to Indian products that will be ‘brought for consumption or removed from the warehouse on or after 12:01 a.m. Eastern Daylight Time on August 27, 2025.’
The notice states that this tariff is linked to ‘threats made to the US by the Government of the Russian Federation’, and India has been targeted under this strategy. The new tariff may affect India’s exports especially in sectors such as textiles, gems and jewellery. However, some sectors such as pharmaceuticals and electronics are still exempt from this.
The US Department of Homeland Security released a draft notice detailing plans to impose a 50% tariff on Indian products, as previously announced by US President Donald Trump (n/1) pic.twitter.com/ut4MuDJxN1
— Press Trust of India (@PTI_News) August 26, 2025
What is India’s stand?
The US wants greater access to India’s agricultural and dairy markets, but the Indian government has termed the move as ‘unfair’ and ‘unjust’. Commerce Minister Piyush Goyal said the government is assessing the impact of US tariffs and will take decisive steps to protect national interests.
Prime Minister Narendra Modi, while addressing a gathering in Ahmedabad, said yesterday that India is ready to bear the impact of US tariffs. Indirectly targeting the US, he said, ‘You all are seeing what kind of politics is happening in the world today, which is driven only by economic selfishness.’ Addressing small traders, shopkeepers, farmers and cattle farmers, he said, ‘For me, your interest is paramount. My government will not allow any harm to small entrepreneurs, farmers or cattle farmers. No matter how much pressure comes, we will continue to increase our stamina.’
Purchase of Russian oil is the reason for tension
The biggest reason behind Trump’s continuous tariff bombs on India is the continuous purchase of Russian crude oil. The Trump administration has repeatedly raised objections to this purchase. The US alleges that India is indirectly providing financial support to the Russia-Ukraine conflict, while India says that its energy purchases are based on national interest and market dynamics. India’s Foreign Minister S. Jaishankar has also questioned America’s double standards. He has said that the US has not taken similar steps on other major buyers of Russian oil, such as China.
