US issues draft notice to implement 50 pc tariffs on Indian products effective August 27

WASHINGTON: The US Customs and Border Protection (CBP) has issued a draft notice on the implementation of additional duties on products imported from India, following the announcement by US President Donald Trump to increase tariffs on Indian goods to 50 per cent.

According to the notice, the additional tariffs are being imposed to give effect to the President’s Executive Order 14329 of August 6, 2025, titled “Addressing Threats to the United States by the Government of the Russian Federation.” The order specified a new rate of duty on imports of articles that are products of India.

The draft notice, scheduled to be published on August 27, 2025, states that the Secretary of Homeland Security has determined it necessary to modify the Harmonized Tariff Schedule of the United States (HTSUS) in line with the executive order.

U.S. Customs and Border Protection Notice of Implementation of Additional Duties on Products of India. US Govt Doc: pic.twitter.com/JmU1qa8zME

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The CBP further clarified that the new duties will come into effect on August 27, 2025. From 12:01 a.m. eastern daylight time on that day, the higher tariffs will apply to all products of India that are either entered for consumption in the United States or withdrawn from warehouses for consumption.

On July 30, US President Donald Trump announced an additional 25 per cent tariffs on India. He stated, “Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country”, Trump said in a post on Truth Social.

“Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE – ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25 per cent, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!”, the US President said.

Prime Minister Narendra Modi on Monday remained firm ahead of the 50 per cent US tariffs on Indian goods, effective August 27, saying his government will find a way out regardless of the economic pressure by Washington.

“No matter how much pressure comes, we will keep increasing our strength to withstand it. Today, the Atmanirbhar Bharat Abhiyan is getting a lot of energy from Gujarat and behind this are two decades of hard work…,” PM Modi said while speaking at a public address in Ahmedabad on Monday.

Industry association FICCI has earlier expressed disappointment over US President Donald Trump’s decision to impose a 25 per cent tariff on Indian goods and said the move is unfortunate and will have a clear bearing on India’s exports.

Indian trade bodies have expressed disappointment over US President Donald Trump’s decision to impose 25 per cent tariffs and additional penalties on imports of goods from India, calling it a setback for the Indian export market while also highlighting potential opportunities for export diversification and supply chain realignment.

While some trade and industry leaders warned of short-term disruptions, others expressed confidence that India’s strong manufacturing base, especially in sectors such as pharmaceuticals and medical equipment, would help it withstand the impact and forge new trade partnerships. (ANI)