Global Daily Tax News, US Begins Collecting 50pc Tariff On Indian Goods, (Aug 29, 2025)

On August 27, 2025, the US Administration began levying a 50-percent tariff on goods originating from India.

The combined 50-percent tariff rate was announced by US President Donald Trump in an Executive Order issued on August 6, 2025. This provided that the 25-percent tariff rate that was introduced from August 8, 2025, would be doubled within 21 days.

The tariff announcement had been intended to pressure India into ceasing the purchase of Russian energy products. However, the Indian Government instead publicly announced a deal subsequently to deepen economic ties with Russia, and the Chinese Government released a statement in support of India.

When the tariff hike was first announced, the Indian Government had stated: "The United States has in recent days targeted India's oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India."

"It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest. We reiterate that these actions are unfair, unjustified, and unreasonable. India will take all actions necessary to protect its national interests," it concluded.