Overview

• An additional 25% duty kicked in on August 27, lifting total levies on many Indian goods to as high as 50%, with a CBP transit window allowing shipments loaded before the deadline to enter at prior rates until September 17.
• Exporter groups report paused orders and production in labor‑intensive sectors such as textiles, gems and jewellery, seafood, footwear, furniture and chemicals, estimating roughly 55% of U.S.-bound merchandise is exposed.
• Smartphones, some electronics and pharmaceuticals are currently exempt from the new rate, while steel, aluminum, passenger vehicles and certain other products remain under separate Section 232 tariff regimes.
• Five rounds of negotiations failed to secure a 15% cap on duties, even as both sides say broader security and economic dialogues continue, including commitments within the Quad.
• Indian officials pledge financial assistance and market diversification support for affected exporters, while economists warn sustained 50% rates could weigh on growth, with Goldman Sachs cautioning GDP could slip below 6%.