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U.S. Finalizes Additional 25% Tariff on Indian Goods, Lifting Duties to 50% From Aug. 27

Washington frames the step as pressure on Russia’s war financing, drawing a sharp rebuke from New Delhi.

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Overview

  • The Department of Homeland Security, via U.S. Customs and Border Protection, issued a notice making the extra 25% duty effective at 12:01 a.m. EDT on August 27 for products listed in an annex.
  • Vice President J.D. Vance said the secondary tariffs are part of “aggressive economic leverage” intended to restrict Russia’s oil revenue and push Moscow toward ending the war in Ukraine.
  • India called the move unfair and unreasonable; Prime Minister Narendra Modi vowed to protect farmers and small businesses, and External Affairs Minister S. Jaishankar defended India’s energy choices as national interest.
  • Exporters report cancelled orders as analysts warn the 50% rate could severely hit labor‑intensive sectors and trim growth, with limited relief where exemptions apply such as certain pharmaceuticals and electronics.
  • Officials and media note the tariff path could shift with progress in RussiaUkraine talks, even as coverage highlights the absence of similar U.S. measures on larger buyers of Russian oil such as China.