Overview

• An additional 25 percentage points in duties took effect today, lifting covered tariffs on many Indian goods to 50% after an initial increase on August 7.
• Roughly $60 billion in exports are in scope, with labor‑intensive sectors hit hardest as textiles face effective rates up to 63.9%, gems about 52%, and shrimp around 60%, with some U.S. buyers already canceling orders.
• Pharmaceuticals and many electronics are excluded, keeping iPhones assembled in India outside the hike, though about $4 billion in other electronic products will be subject to the 50% rate.
• Parts of the auto‑components trade are affected, with about half of India’s $6.6 billion in shipments in that category now facing the 50% tariff and buyers weighing alternatives such as Mexico.
• The White House invoked the IEEPA on national‑security grounds tied to India’s surge in Russian crude purchases, and Russia has signaled it could offer alternatives to help sustain India’s exports.