The U.S. Department of Homeland Security announced Tuesday that it has notified India of plans to increase tariffs on Indian goods to 50%, with the measure set to take effect as the deadline for the higher duties expires.
According to the notice, Indian goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 AM Eastern Daylight Time on August 27, 2025, will be subject to the new 50% tariff rate. This marks a significant escalation from the existing 25% tariffs.
The move signals that the White House intends to move forward with stronger trade measures after negotiations between the two sides did not yield a breakthrough. U.S. officials have described the tariffs as part of a broader strategy to apply economic leverage and protect domestic interests.
In India, Prime Minister Narendra Modi addressed the development earlier this week, expressing support for small entrepreneurs and farmers. “No matter how much pressure comes, we will keep increasing our strength to withstand it,” he stated on Monday, just ahead of the U.S. tariff deadline.
Analysts note that the tariff hike is expected to impact a wide range of sectors, from manufacturing and agriculture to consumer goods. Businesses on both sides are closely monitoring the potential ripple effects on trade flows, supply chains, and market access.
With tariffs set to double overnight, the issue is likely to remain a focal point in U.S.-India economic relations in the months ahead.
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