BIG NEWS | US Announces 50% Tariff on Indian Imports, Official Notification Released; PMO Meeting Likely Today

"US imposes 50% tariff on Indian imports effective August 27, 2025. Key sectors like textiles, gems, leather, and auto parts to be hit; PMO to review response."

By Palak Vaghela 26 Aug 2025 in India News

New Update

The United States has officially issued a notification imposing a 50% tariff (an additional 25% hike) on goods imported from India. The new tariff will come into effect from 12:01 AM on August 27, 2025.

Negotiations over a trade deal between India and the US recently failed. US President Donald Trump claimed that India’s continued purchase of oil from Russia is prolonging the Ukraine war. Following this, Washington announced the sharp increase in tariffs on Indian exports.

Exemptions from Tariff

The tariff will not apply to:

Pharmaceuticals
Semiconductors
Energy resources

How Will It Impact India?

India exports goods worth $87 billion to the US, accounting for around 2.5% of India’s GDP. The increased tariff is expected to severely impact several key sectors, including:

Textiles & garments
Gems & jewelry
Leather products
Marine products
Chemicals
Auto parts

In response, the Prime Minister’s Office (PMO) is expected to hold a high-level meeting today to review the US tariff decision and discuss possible countermeasures.

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