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5h ago

U.S. 50% Tariffs on Indian Imports Take Effect, Escalating Trade Rift

Washington says the duty punishes India's Russian oil purchases.

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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.
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Overview

  • U.S. Customs and Border Protection made the additional 25% duty effective at 12:01 a.m. EDT on August 27, taking total levies on many Indian goods to as high as 50%.
  • The higher rate hits labor‑intensive exports such as textiles, gems and jewellery, leather, seafood, furniture and chemicals, while smartphones, pharmaceuticals and certain electronics are excluded for now.
  • A three‑week transit waiver allows goods loaded before the deadline to enter at prior rates until 12:01 a.m. EDT on September 17.
  • Trade engagement has stalled as a planned U.S. delegation visit was postponed, and India denounced the move as unfair while preparing relief for exporters and plans to diversify markets.
  • Exporter groups and analysts estimate roughly 55% of India’s $87 billion in U.S. shipments face higher duties, warning of job losses and a potential 0.4–0.8 percentage‑point drag on growth.