Starting August 27, the Trump administration will implement new tariffs on Indian goods, with the additional levies taking effect after 12:01 a.m. A 25% tariff will be imposed on Indian products entering the U.S. market for consumption or being withdrawn from warehouses after that time. The US views this as a consequence of India’s continued purchase of Russian oil, which the US believes supports Russia’s war in Ukraine. India has rejected these claims.
Executive Order 14329, issued in August 2025, highlights that these tariffs are crucial in addressing a national emergency. The order aims to tackle the issue of India’s import of Russian oil by imposing additional duties.
The tariffs will be applied at 12:01 AM Eastern Daylight Time (EDT) on August 27, which corresponds to 9:31 AM Indian Standard Time (IST). This means that the 50% tariffs will affect Indian exports starting at 9:31 AM IST.
The US is the most significant market for India’s exports. The new tariffs could make Indian products less competitive, potentially affecting sectors such as gems and jewelry, auto parts, medicines, and electronics. Seafood exporters are also worried about potential losses. In FY24, India exported goods worth $86.5 billion to the US. Experts predict a significant decrease in India’s exports due to the tariffs.
To manage this situation, a high-level meeting will be held at the Prime Minister’s Office on August 26, 2025, led by Principal Secretary P.K. Mishra. Discussions will focus on strategies to support Indian exports, with a focus on targeted support for small and medium enterprises. Exporters have requested an Emergency Credit Line Guarantee Scheme. The government is considering policy options to assist specific industries and working to protect export-oriented units and small and medium enterprises.
The government is concerned that the tariffs could lower profit margins, disrupt supply chains, and reduce competitiveness in key sectors.
Prime Minister Narendra Modi has urged for the promotion of local goods and the protection of national interests. However, the tariffs could negatively impact India’s GDP growth, potentially dropping it below 6% this year.