The United States has issued a formal notice to India regarding the implementation of additional tariffs, as the Trump administration’s 25 per cent penalty on Indian imports comes into effect on August 27, 2025. According to the Department of Homeland Security (DHS), the increased levies will apply to Indian products “entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 AM Eastern Daylight Time” on the specified date.
This move raises the total tariff on affected Indian goods to 50 per cent, following President Donald Trump’s executive order issued on August 6, 2025. The administration cited India’s continued purchase of Russian oil as a “threat to the United States” and a contributing factor to Russia’s war in Ukraine. US Vice President J.D. Vance emphasized that these “aggressive economic measures,” including secondary tariffs, are aimed at limiting Russian economic gains from oil exports.
The notice clarified that Indian imports subject to the additional duty will be recognized under “privileged foreign status” in the United States foreign trade zone.
India has strongly rejected these allegations, labeling the tariffs as “unfair, unjustified and unreasonable.” The Ministry of External Affairs (MEA) affirmed that India would take “all actions necessary to protect its national interests.” Delhi’s ambassador to Moscow, Vinay Kumar, confirmed that Indian companies will continue to source oil based on the best commercial deals available. Prime Minister Narendra Modi also reiterated India’s resolve, stating, “No matter how much pressure comes, we will keep increasing our strength to withstand it.”
This development marks a significant escalation in trade tensions between the US and India, reflecting growing international scrutiny over India’s energy procurement and the ongoing geopolitical dynamics surrounding Russia and Ukraine.