The additional 25% tariff imposed by U.S. President Donald Trump on India for its purchases of Russian oil came into effect Wednesday (August 27, 2025), bringing the total amount of levies imposed on New Delhi to 50 per cent.
The Department of Homeland Security (DHS), in a draft order published on Monday (August 25, 2025), said the increased levies would hit Indian products that are тАЬentered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 27, 2025тАЭ.
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Mr. Trump had announced reciprocal tariffs of 25% on India that came into effect on August 7, when tariffs on about 70 other nations also kicked in.
On August 7, the U.S. President announced doubling tariffs on Indian goods to 50% for IndiaтАЩs purchases of Russian crude oil, but gave a 21-day window to negotiate an agreement.
On Monday (August 25, 2025), Prime Minister Narendra Modi asserted he canтАЩt compromise on the interests of farmers, cattle-rearers, small-scale industries, cautioning тАЬpressure on us may increase, but we will bear itтАЭ.
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тАЬProducts of India, except those set forth in section 3 of Executive Order 14329, that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 27, 2025, will be subject to the additional ad valorem rate of duty,тАЭ the DHS order read.
However, Indian products will be exempt from the new 50% tariff if they were тАЬalready loaded on a ship and in transit to the U.S. 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 U.S. Customs by declaring the special code HTSUS 9903.01.85тАЭ.
Commenting on the additional tariffs on India, Mark Linscott, Senior Advisor with Washington, D.C.-based business consulting and advisory firm The Asia Group, said that тАЬunfortunatelyтАЭ, the U.S. and India have managed to convert what appeared to be a true and unprecedented win-win on trade into a тАЬremarkable lose-loseтАЭ.
тАЬFor the moment, the trade talks on reciprocal tariffs are on thin ice while the two sides stew over how to reach an understanding on Russian oil purchases. Hopefully, cooler heads who understand the value of the relationship will prevail in finding the path forward,тАЭ Mr. Linscott said.
Partner at The Asia Group Nisha Biswal said the 50% tariffs on India тАФ now the highest of any U.S. trading partner тАФ will be hugely disruptive, pricing Indian textiles and garments out of the U.S. market.
тАЬU.S. businesses have also lost the unprecedentedly low tariff rates that USTR (United States Trade Representative) had previously negotiated. The move also casts doubt on the China+1 strategy, creating uncertainty for companies that had shifted production to India,тАЭ she said.
тАЬThe short-term impact of these tariffs will be undoubtedly severe, but a path forward remains possible if Modi and Trump engage directly to restore trust and strike a workable agreement,тАЭ Ms. Biswal added.
Managing Principal at The Asia Group Basant Sanghera said the secondary tariffs will be highly damaging to U.S.-India economic ties and India’s manufacturing ambitions.
тАЬWithout some level of leader-level engagement, the trade relationship will remain in the doldrums, with risk of further damage,тАЭ he said.
U.S. Treasury Secretary Scott Bessent has accused India of тАЬprofiteeringтАЭ by reselling Russian oil. India has called the tariffs imposed by the U.S. тАЬunjustified and unreasonableтАЭ.
Published – August 27, 2025 11:42 am IST
