
Washington, Aug 26: The U.S. Customs and Border Protection (CBP) has issued a draft notice on the implementation of additional duties on products imported from India, following the announcement by U.S. President Donald Trump to increase tariffs on Indian goods to 50%.
According to the notice, the additional tariffs are being imposed to give effect to the President's Executive Order 14329 of August 6, 2025, titled "Addressing Threats to the United States by the Government of the Russian Federation."
The order specified a new rate of duty on imports of articles that are products of India.
The draft notice, scheduled to be published on August 27, 2025, states that the Secretary of Homeland Security has determined it necessary to modify the Harmonized Tariff Schedule of the United States (HTSUS) in line with the executive order.
The CBP further clarified that the new duties will come into effect on August 27, 2025. From 12:01 a.m. eastern daylight time on that day, the higher tariffs will apply to all products of India that are either entered for consumption in the United States or withdrawn from warehouses for consumption.
Earlier on July 30, 2025, U.S. President Donald Trump announced an additional 25% tariffs on India. He stated that "Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country," Trump said in a post on Truth Social."
Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE - ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!", the U.S. President said.
Prime Minister Narendra Modi on Monday (August 25, 2025) remained firm ahead of the 50% U.S. tariffs on Indian goods, effective August 27, saying his government will find a way out regardless of the economic pressure by Washington.
"No matter how much pressure comes, we will keep increasing our strength to withstand it. Today, the Atmanirbhar Bharat Abhiyan is getting a lot of energy from Gujarat and behind this are two decades of hard work...," Mr. Modi said while speaking at a public address in Ahmedabad on Monday (August 25, 2025).
How bad will it be?
The United States was India’s top export destination in 2024, with shipments worth $87.3 billion.
Analysts at Nomura warn that 50% duties would be “akin to a trade embargo”, devastating smaller firms with “lower value add and thinner margins”.
Elara Securities’s Garima Kapoor said no Indian product can “stand any competitive edge” under such heavy import taxes.

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