The US government has scheduled the implementation of increased tariffs on Indian goods, set to take effect after 12:01 a.m. on August 27. A 25 percent tariff will be added to the cost of Indian products entering the US market or withdrawn from warehouses after the specified time. The US government states that the tariffs are a response to India’s continued purchase of Russian oil. India has refuted this claim.
Executive Order 14329, issued in August 2025, justifies the tariffs as a necessary measure to address the national emergency related to India’s import of Russian oil.
The tariffs will become effective at 12:01 AM Eastern Daylight Time (EDT) on August 27, which is equivalent to 9:31 AM Indian Standard Time (IST). This means the 50% tariffs will be applied in India from 9:31 AM IST on the same day.
The US is a critical market for Indian exports, accounting for a significant portion of India’s foreign sales. The additional tariffs could render Indian goods more expensive, potentially impacting sectors such as gems and jewelry, auto parts, pharmaceuticals, and electronics. Seafood exporters are also concerned about the potential impacts. In the fiscal year 2024, India exported goods worth $86.5 billion to the US. Experts project a considerable decline in Indian exports to the US because of these tariffs.
To address these economic challenges, the Prime Minister’s Office is holding a high-level meeting on August 26, 2025, chaired by Principal Secretary P.K. Mishra. Senior officials will strategize ways to mitigate the impact on India’s exports to the US. The focus will be on providing targeted support to specific industries rather than economy-wide measures. Exporters have requested an Emergency Credit Line Guarantee Scheme. The government is considering policy options and is focused on safeguarding export-oriented units and small and medium enterprises.
The government is worried that the 50% tariff could cut profit margins for Indian exporters, weaken supply chains, and reduce their competitiveness in key sectors. Prime Minister Narendra Modi has urged a focus on local goods to protect national interests. However, the tariffs could negatively impact India’s economic growth.
