The United States has issued a formal notice imposing additional 25 per cent tariffs on Indian imports, raising the overall duty to 50 per cent. The Department of Homeland Security confirmed that the new levies will take effect from 12:01 am Eastern Daylight Time on 27 August. The notice implements US President Donald Trump’s Executive Order 14329, signed earlier this month, which directs US agencies to counter what it describes as threats posed by Russia and its trading partners.
Reason for the move
President Trump said the decision was linked to India’s continued purchase of Russian oil, which Washington argues helps fund Moscow’s war against Ukraine. Speaking earlier this month, Trump had warned that further sanctions or tariffs could follow if no breakthrough emerged in peace talks. “That’s going to be up to them. It takes two to tango, I always say, and they should meet,” he said, referring to stalled negotiations between Russian President Vladimir Putin and Ukraine’s Volodymyr Zelenskiy.
India pushes back
India has condemned the additional duties as “unfair, unjustified and unreasonable”. Officials have said they hope progress in peace talks could eventually lead to the withdrawal of tariffs but stressed that New Delhi will continue to protect its national interests. Prime Minister Narendra Modi reiterated this message during a rally in Ahmedabad on Monday.
“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,” Modi said.
He also pledged that his government would not allow harm to farmers, small entrepreneurs, or livestock rearers. “From the soil of Ahmedabad, I wish to tell you, promise you from the land of Gandhi, that the interests of small entrepreneurs, shopkeepers, farmers and livestock rearers are of utmost priority for Modi... Dabav kitna hi kyun na aaye, hum jhelne ki apni takat badhate jayenge,” he added.
The tariffs mark a setback in US–India trade relations, with a planned round of bilateral talks already postponed. Washington has so far avoided imposing similar measures on other major buyers of Russian crude, most notably China. Meanwhile, Modi and Putin have held talks in recent weeks, with India signalling its intent to continue sourcing energy from Moscow.
The sharp escalation in tariffs now sets up a period of economic friction between two major trading partners, even as global efforts to bring Russia and Ukraine to the negotiating table remain at an impasse.
The US Department of Homeland Security released a draft notice detailing plans to impose a 50% tariff on Indian products, as previously announced by US President Donald Trump (n/1) pic.twitter.com/ut4MuDJxN1
— Press Trust of India (@PTI_News) August 26, 2025
The US Department of Homeland Security released a draft notice detailing plans to impose a 50% tariff on Indian products, as previously announced by US President Donald Trump (n/2) pic.twitter.com/BB1HfKaU3m
— Press Trust of India (@PTI_News) August 26, 2025
Reason for the move
President Trump said the decision was linked to India’s continued purchase of Russian oil, which Washington argues helps fund Moscow’s war against Ukraine. Speaking earlier this month, Trump had warned that further sanctions or tariffs could follow if no breakthrough emerged in peace talks. “That’s going to be up to them. It takes two to tango, I always say, and they should meet,” he said, referring to stalled negotiations between Russian President Vladimir Putin and Ukraine’s Volodymyr Zelenskiy.
India pushes back
India has condemned the additional duties as “unfair, unjustified and unreasonable”. Officials have said they hope progress in peace talks could eventually lead to the withdrawal of tariffs but stressed that New Delhi will continue to protect its national interests. Prime Minister Narendra Modi reiterated this message during a rally in Ahmedabad on Monday.
“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,” Modi said.
He also pledged that his government would not allow harm to farmers, small entrepreneurs, or livestock rearers. “From the soil of Ahmedabad, I wish to tell you, promise you from the land of Gandhi, that the interests of small entrepreneurs, shopkeepers, farmers and livestock rearers are of utmost priority for Modi... Dabav kitna hi kyun na aaye, hum jhelne ki apni takat badhate jayenge,” he added.
The tariffs mark a setback in US–India trade relations, with a planned round of bilateral talks already postponed. Washington has so far avoided imposing similar measures on other major buyers of Russian crude, most notably China. Meanwhile, Modi and Putin have held talks in recent weeks, with India signalling its intent to continue sourcing energy from Moscow.
The sharp escalation in tariffs now sets up a period of economic friction between two major trading partners, even as global efforts to bring Russia and Ukraine to the negotiating table remain at an impasse.
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