US Imposes 50% Tariff on Indian Imports Starting August 27

New Tariff Announcement

The United States is set to implement a significant 50% tariff on goods imported from India, effective August 27. This decision is a response to India's energy imports from Russia, as outlined in a recent draft notice from the administration. The Department of Homeland Security published this notice on Monday, confirming that the new tariffs will come into force at 12:01 AM EST on Wednesday.

Background of the Tariff

These tariffs are a result of President Trump's Executive Order 14329, which was signed on August 6. According to the notice from US Customs and Border Protection (CBP), the additional 25% tariff will apply to Indian products that are either consumed or withdrawn from warehouses starting from 12:01 AM EDT on August 27, 2025. This move reflects the ongoing trade tensions amid stalled negotiations between the US, Russia, and Ukraine.

Deteriorating US-India Relations

The relationship between India and the US has soured since the Trump administration criticized New Delhi for its discounted energy imports from Russia. Earlier this month, Trump announced plans to escalate tariffs on Indian goods from 25% to 50% as a punitive measure for purchasing Russian crude oil, aiming to pressure Russian President Vladimir Putin to cease hostilities in Ukraine.

Diplomatic Efforts

On August 15, 2025, Trump met with Putin during a summit in Alaska and also engaged with several European leaders, including Ukraine’s President Volodymyr Zelenskyy, at the White House. However, attempts to facilitate a direct meeting between the Russian and Ukrainian leaders have not yet produced any tangible outcomes.