Overview

• A Department of Homeland Security draft notice says the additional 25% duty will apply to Indian goods entered for consumption, or withdrawn from warehouse, on or after 12:01 a.m. EDT on August 27, taking the total levy to 50%.
• The action implements Executive Order 14329 and follows the administration’s argument that India’s purchases of Russian oil help finance Moscow’s war in Ukraine.
• India has condemned the tariffs as unfair; Prime Minister Narendra Modi pledged to shield farmers and small businesses, and Foreign Minister S. Jaishankar defended energy choices based on national interest.
• Exporters report immediate disruption with textiles, apparel, gems and jewellery and other labor‑intensive sectors seeing orders diverted, while limited exemptions cover some pharmaceuticals and electronics, including iPhones assembled in India.
• Economists warn of a growth hit to India, with estimates ranging up to about 0.2–1.0 percentage points, and U.S. officials signal possible additional tariffs or sanctions depending on progress in Russia‑Ukraine talks.