The U.S. will enforce additional tariffs on Indian imports starting August 27, 2025, as per a DHS notification. These apply to all goods entered for consumption from 12:01 a.m. (EDT) onward.
Not all goods are impacted. Exempt categories include: • Iron, steel & aluminum products • Passenger vehicles (SUVs, sedans, minivans, etc.) • Semi-finished copper items • Light trucks
India was once seen as a prime U.S. trade ally. But deteriorating talks beginning under the Trump administration have led to India facing steep punitive tariffs.
Nomura warns the 50% tariffs feel “akin to a trade embargo,” especially damaging to: • Textiles • Seafood • Jewelry Exporters are reporting canceled U.S. orders, increasing competition from Vietnam & Bangladesh.
Some sectors are spared—for now: • Pharmaceuticals • Electronics (including iPhones made in India) But experts say even this reprieve may be short-lived.
According to S&P, exports worth 1.2% of India’s GDP could be hit. Still, it believes the damage will be a “one-off shock” and won’t derail India’s long-term growth path.
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