Overview

• A Department of Homeland Security notice put an additional 25% punitive duty into force at 12:01 a.m. EDT on August 27, taking total levies on many Indian goods to as much as 50%.
• Customs guidance carves out categories such as smartphones and many pharmaceuticals, treats steel, aluminum and autos under separate regimes, and grants a ship‑in‑transit waiver through September 17 if importers declare code HTSUS 9903.01.85.
• Exporter groups and analysts say roughly 55% of India’s U.S.-bound merchandise, about $87 billion, is exposed, with labor‑intensive sectors like textiles, gems and jewellery, seafood and leather reporting cancellations and losing orders to rivals.
• New Delhi has called the tariffs unfair, is preparing financial support and market‑diversification steps for affected exporters, and says talks continue even as relations come under acute strain.
• Economists warn the duties could dent India’s growth and unsettle China+1 supply‑chain plans, while noting tariff costs are partly borne by U.S. consumers and that revenue claims are uncertain.