Washington DC: Ahead of the August 27 deadline, the Department of Homeland Security (DHS) has issued an official notice regarding the imposition of an additional 25% tariff on Indian imports. The tariffs are set to take effect at 12:01 a.m. Eastern Daylight Time (EDT) on August 27, 2025 (9:31 am. IST on August 27). It is part of the current US administration's broader economic response to what it calls "threats" from the Russian Federation.

What prompted the new tariffs on India?

In an official notice released by the Department of Homeland Security, the US government stated that the additional duties are being imposed in response to perceived threats posed by the Government of the Russian Federation. India, which has continued purchasing Russian crude oil has now been included in the scope of punitive economic actions.

“The duties set out in the Annex to this document are effective with respect to products of India that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am Eastern Daylight Time on August 27, 2025," the notice stated.

How high are the tariffs now?

With the addition of a 25%, the overall tariffs on Indian goods entering the United States now stand at 50%, doubling the earlier rate. This aggressive tariff policy marks a further deterioration in India-US trade relations, already strained over defence and energy alignments.

How has India responded?

Just two days before the new tariffs take effect, Prime Minister Narendra Modi addressed the issue during a public rally in Ahmedabad's Nikol area. Without directly naming the United States, Modi alluded to international economic pressures driven by self-interest.

“Today in this world, there is politics of economic self-interest, everyone looks out for themselves. We are witnessing this.”

Reaffirming his commitment to protecting India’s economic sovereignty, PM Modi added, “No matter how much pressure comes, we will keep increasing our strength to withstand it.”

What’s at stake for India?

The move could significantly impact Indian exporters, particularly small and medium businesses that rely on US markets. However, Modi’s statement suggests that the Indian government will take measures to cushion the blow for vulnerable sectors and push for economic self-reliance.