Overview

• The additional 25% duty took effect on August 27, lifting many Indian import rates to 50%, as confirmed by a Federal Register notice and White House trade adviser Peter Navarro.
• Levies on items such as clothing, gems, jewelry, shoes, sports goods, furniture and chemicals now reach up to 50%, and export groups estimate the increase could hit nearly 55% of India’s $87 billion in U.S.-bound goods.
• New Delhi denounced the measure as unjustified, signaled it will keep buying the cheapest energy, and said affected exporters will receive financial support and be encouraged to shift sales to other regions.
• Five rounds of talks failed to avert the hike, with India seeking a 15% cap similar to rates the U.S. extends to partners such as Japan, South Korea and the EU.
• The escalation comes as wider U.S. tariffs unsettle Europe, with Germany’s machinery sector warning that roughly 30% of its U.S. sales face higher steel and aluminum-related duties and urging Brussels to seek stronger relief.