New Delhi: The United States has formally notified its plan to impose additional 25% tariffs on Indian goods, a move that could sharply escalate trade tensions between Washington and New Delhi.
The US Department of Homeland Security on Monday issued a directive implementing the tariffs announced by President Donald Trump on August 6. The order specifies that Indian goods—excluding certain exempted categories—imported into the US from 12:01 am EDT on August 27, 2025, will face the higher duties.
The fresh levy effectively doubles the tariff rate on nearly $60 billion worth of Indian exports, taking it to around 50%—one of the steepest levels imposed on any American trading partner.
Trump’s move comes amid growing friction over India’s continued purchase of Russian crude oil, a policy that Washington has strongly opposed. While major Indian exports such as mobile phones and pharmaceuticals remain exempt, sectors like textiles, engineering goods, and processed foods are expected to feel the brunt. In FY 2024-25, India shipped goods worth $86 billion to the US, making it its largest export market.
The tariff announcement coincided with Trump’s renewed attack on nations imposing digital service taxes and regulations on American tech companies. In a fiery post on Truth Social, he warned of “substantial additional tariffs” and export restrictions if such measures are not rolled back.
“As President, I will stand up to countries that attack our incredible American tech companies,” Trump wrote. “Digital taxes and discriminatory regulations unfairly target US firms while letting China’s tech giants off the hook. This must end—and end now.”
He cautioned that unless such rules are withdrawn, the US would slap heavy tariffs on offending countries and restrict the export of sensitive American technology, including semiconductors.
“America and its technology champions are no longer the world’s piggy bank or doormat,” Trump declared, urging nations to “respect America or face the consequences.”
The standoff comes just as Prime Minister Narendra Modi issued a sharp response to Washington, two days before the new tariffs kick in. With India’s export-driven sectors bracing for impact, the escalating tariff war threatens to strain one of the world’s most significant trade relationships.
