Overview

• Tariffs took effect at 12:01 a.m. EDT on August 27, with a U.S. Customs and Border Protection notice allowing goods loaded before the deadline to clear at prior rates until September 17.
• Duties now reach as high as 50% on many lines, hitting garments, gems and jewellery, footwear, furniture, chemicals and seafood, with exporter groups saying roughly 55% of U.S.-bound shipments are exposed.
• Pharmaceuticals received immediate carveouts and several items such as steel, aluminum and passenger vehicles remain under separate Section 232 regimes rather than the blanket 50% rate.
• New Delhi has condemned the action as unfair and is preparing financial support and market-diversification measures for exporters, while industry groups warn of disrupted orders and job risks in labor‑intensive hubs.
• Despite heightened tensions, both governments said senior officials met virtually this week and reaffirmed cooperation including through the Quad, even as analysts warn prolonged tariffs could undercut growth and investment plans.