Particle.news
Download on the App Store
31 ARTICLES
·
2h ago

U.S. 50% Tariffs on Indian Goods Take Effect as New Delhi Moves to Cushion the Blow

Washington links the added duty to India’s Russian oil purchases, with electronics and pharmaceuticals spared for now.

A worker pushes a cart of packaged frozen shrimps inside a cold storage unit at a shrimp factory situated on the outskirts of Vishakhapatnam, India, April 10, 2025.
Image
Workers in a manufacturing unit make leather footwear in Agra, India, Monday, Aug. 25, 2025. (AP Photo/Manish Swarup)

Overview

  • DHS/CBP notices implement the additional 25% levy at 12:01 a.m. EDT on August 27 under Executive Order 14329, lifting duties on many Indian imports to 50%.
  • Roughly $48 billion of merchandise exports are exposed, with labour‑intensive sectors such as textiles, gems and jewellery, leather, and shrimp facing the steepest hit and factories in Tiruppur, Noida, and Surat pausing production.
  • Carve‑outs include pharmaceuticals and many electronics such as chips, smartphones and tablets, plus limited transit and humanitarian exemptions, and reports note iPhone shipments from India are unaffected unless exemptions change.
  • India is preparing a Rs 25,000‑crore Export Promotion Mission, GST tweaks, SEZ changes and credit support to shield exporters, as a planned U.S. trade visit was postponed and talks continue through other channels.
  • The White House frames the move as pressure over Russian oil, exporter groups warn of order cancellations and job risks with rivals like Vietnam and Bangladesh poised to gain, and economists flag potential growth drags.