50% U.S. tariffs effective from 27 August 2025

• The United States government is getting ready to implement the 25% additional tariffs imposed on India by U.S. President Donald Trump.
• Indian exporters are bracing themselves for a sharp fall in business to the U.S., with early estimates predicting that more than $47 billion worth of goods will face the 50% tariff rate.
• This includes the 25% tariff that Indian imports have attracted since August 7 plus an additional 25% tariff imposed as a penalty for India’s import of oil from Russia.
• This additional tariff will not apply to iron, steel, or aluminium products; passenger vehicles such as sedans, sport utility vehicles, crossover utility vehicles, minivans, cargo vans, and light trucks; semi-finished copper, and intensive copper derivative products, among others.
• The Ministry of External Affairs did not comment on whether India is planning any counter-measures or counter-tariffs against the United States,
• The Chinese Ambassador to India had referred to the U.S. as a “bully”, saying the Chinese government opposes the tariffs and “firmly stands with India” on the issue.
• Reserve Bank of India Governor Sanjay Malhotra, too, said the central bank “would not be found wanting” in supporting those sectors that will be adversely affected by the tariffs.
• According to the Federation of Indian Export Organisations president S.C. Ralhan, the development could “severely impact” India’s exports to the U.S., “with approximately 55% of India’s U.S.-bound shipments (worth $47-48 billion) now exposed to pricing disadvantages of 30% to 35%, rendering them uncompetitive in comparison to competitors from China, Vietnam, Cambodia, Philippines, and other Southeast and South Asian countries”.