Saturday, March 29, 2025

From August 27, U.S. to Impose Extra 25% Tariff on Indian Goods, Trump Administration Issues Notice

August 26, 2025 9:21 AM
Trump

From August 27, U.S. to Impose Extra 25% Tariff on Indian Goods, Trump Administration Issues Notice

 

The United States has officially announced an additional 25% tariff on imports from India, set to take effect from 12:01 AM EST on August 27. The move, authorized by a public notice issued through the Department of Homeland Security and U.S. Customs and Border Protection, enforces an executive order signed by President Donald Trump on August 6.

With this new measure, the total tariff rate on Indian goods entering the U.S. will rise to 50%, matching the level currently applied to Brazil and far exceeding the tariffs imposed on other Asia-Pacific nations.

Linked to Russia Sanctions

According to the notice, the additional tariff is a direct response to what Washington describes as “threats from the Russian Federation.” The Trump administration argues that India’s continued purchase of Russian oil indirectly funds Moscow’s war in Ukraine.

President Trump had earlier imposed a 25% tariff on August 1, citing India’s trade surplus with the U.S. This fresh penalty doubles that rate, specifically targeting India for what the administration views as undermining Western efforts to pressure Russia into a peace settlement.

Strategic Pressure Ahead of Peace Talks

White House officials see the move as part of a broader strategy to intensify economic pressure before any Russia-Ukraine peace agreement. Trump has already hinted at the possibility of more sweeping trade penalties against countries that continue to engage with Moscow if diplomatic talks fail. He also warned of “very big consequences” in the coming weeks.

So far, the U.S. has not applied similar punitive tariffs on China and other major buyers of Russian oil, raising questions about Washington’s selective enforcement.

India in the Crosshairs

By imposing one of the steepest tariff rates on Indian goods, the Trump administration is sending a strong signal to New Delhi. While India has defended its energy purchases as essential for domestic needs, Washington insists that these imports provide Russia with vital revenue amid its war with Ukraine.

The notice marks another sharp escalation in U.S.-India trade tensions, placing New Delhi among the hardest-hit economies under Trump’s aggressive trade and sanctions policy.

Have something to say? Post your comment