Trump Administration Notifies India Of New Tariffs, Citing Russian Threats; August 27 as Deadline

The United States has notified India about fresh tariffs up to 50% on a wide range of Indian goods, citing concerns over India’s continued trade with Russia. These tariffs will be effective from August 27, 2025. The move raises significant economic tensions between the two nations, affecting Indian exporters amid efforts to strengthen internal economic self-reliance.

US Targets Indian Imports With Steep Tariff Hike

On August 26, 2025, the US Department of Homeland Security issued a formal notification announcing tariffs of up to 50% on several Indian products starting 12:01 am EDT on August 27, 2025. This trade action is positioned as a response to Russia-related national security threats. India has been implicated due to its substantial imports of discounted Russian crude since 2022, which Washington claims indirectly finances the Ukraine conflict.

India's Position on Crude Imports from Russia

India started purchasing discounted crude oil from Russia after sanctions were imposed by the West. While the US views this trade as supporting Russia’s war efforts, India has firmly denied any wrongdoing. Foreign Minister S Jaishankar commented on August 23, 2025, stating, “If you don’t like our products, don’t buy them. Nobody is forcing you.” He pointed out that Europe and America themselves continue to trade selectively while criticising others.

Broad Spectrum of Indian Goods Affected

The tariff list includes textiles, seafood, diamonds, and several agricultural products. The directive applies to all Indian goods entering the US for consumption or withdrawn from warehouses after the cut-off. Affected exporters are reportedly rushing shipments to beat the deadline. India’s export sector, which relies significantly on the US market, is now facing major headwinds.

Read More: India and Russia Double Down on Trade, Aim for $100 Billion!

Modi Government’s Stance and Domestic Reassurance

Prime Minister Narendra Modi, addressing a rally in Ahmedabad on August 25, 2025, vowed strong support for domestic entrepreneurs and farmers. He pledged that neither global pressures nor foreign tariffs would deter India’s Atmanirbhar Bharat vision. He affirmed the government's commitment to strengthening small enterprises and rural economic stakeholders despite international challenges.

Conclusion

The latest US move to impose 50% tariffs on Indian goods signals a sharp downturn in bilateral trade ties. While Washington targets India for its continued energy relationship with Russia, India stands firm on securing its economic interests. The situation remains dynamic as both nations navigate this diplomatic standoff set against complex global politics.

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