Overview

• President Trump signed an executive order on August 6 that raises US tariffs on Indian goods by an additional 25%, bringing the total duty to 50% and taking effect 21 days later.
• Exemptions remain in place for items under separate sector-specific duties such as steel and aluminium, and potential carve-outs are under review for categories like pharmaceuticals.
• The White House cited India’s continued purchase of Russian oil as the rationale, accusing New Delhi of fueling Moscow’s war effort and warning of similar penalties for other oil-importing nations.
• India’s Ministry of External Affairs denounced the move as “unfair, unjustified and unreasonable,” while the Indian Army’s Eastern Command highlighted US military aid to Pakistan in 1971 to underscore perceived hypocrisy.
• Analysts warn the higher duties threaten key sectors including textiles, footwear and gems, putting roughly $87 billion in US-bound exports at risk.