Overview

• U.S. Customs and Border Protection began enforcing the higher duties at 12:01 a.m. EDT on Aug. 27, with a three‑week grace for qualifying goods already in transit to clear at prior rates until Sept. 17.
• Coverage spans garments, textiles, gems and jewellery, footwear, furniture, sporting goods and chemicals, while pharmaceuticals and some electronics including smartphones are excluded or under separate review, and steel, aluminum and passenger vehicles remain under Section 232 measures.
• Indian exporter groups report halted production and canceled U.S. orders as rivals in Vietnam, Bangladesh, Thailand and China gain share, with economists warning sustained 50% levies could push growth below 6%.
• New Delhi has denounced the move and is preparing relief, with officials pledging financial support and export diversification and Prime Minister Narendra Modi promoting tax cuts, GST simplification and a self‑reliance drive.
• The escalation follows five failed negotiation rounds in which India sought a 15% cap, even as both governments publicly affirmed plans to keep broader cooperation intact, including commitments under the Quad.