US Issues Draft Notice To Implement 50% Tariffs On Indian Products Effective August 27

US Issues Draft Notice To Implement 50% Tariffs On Indian Products Effective August 27

Washington DC: The US Customs and Border Protection (CBP) has released a draft notice regarding the implementation of extra duties on products imported from India, following US President Donald Trump's announcement to raise tariffs on Indian goods to 50 percent.

As per the notice, these additional tariffs are being enforced to implement the President's Executive Order 14329 dated August 6, 2025, titled "Addressing Threats to the United States by the Government of the Russian Federation."

The order outlined a new duty rate on imports of items that are products of India.

The draft notice, which is set to be published on August 27, 2025, indicates that the Secretary of Homeland Security has deemed it necessary to amend the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the executive order.

The CBP also specified that the new duties will take effect on August 27, 2025. Starting at 12:01 a.m. eastern daylight time on that date, the increased tariffs will be applicable to all products from India that are either entered for consumption in the United States or withdrawn from warehouses for consumption.

Previously, on July 30, US President Donald Trump announced an additional 25 percent tariffs on India.

He remarked, "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 stated in a post on Truth Social.

"Furthermore, they have consistently procured the vast majority of their military supplies from Russia, making them the largest purchaser of ENERGY from Russia, alongside China, during a period when there is widespread demand for Russia to CEASE THE VIOLENCE IN UKRAINE - ALL THINGS ARE NOT POSITIVE! AS A RESULT, INDIA WILL INCUR A TARIFF OF 25 percent, IN ADDITION TO A PENALTY FOR THE ABOVE, BEGINNING ON AUGUST 1st. I APPRECIATE YOUR ATTENTION TO THIS ISSUE. MAGA!" stated the US President.

On Monday, Prime Minister Narendra Modi stood resolute in the face of the impending 50 percent US tariffs on Indian products, set to take effect on August 27, asserting that his administration will navigate through the economic challenges posed by Washington.

"Regardless of the pressure we face, we will continue to bolster our resilience. The Atmanirbhar Bharat Abhiyan is currently receiving significant momentum from Gujarat, supported by two decades of diligent effort...," PM Modi remarked during a public address in Ahmedabad on Monday.

The industry association FICCI previously voiced its discontent regarding US President Donald Trump's decision to implement a 25 percent tariff on Indian goods, labeling the action as unfortunate and indicating it will have a tangible impact on India's exports.

Indian trade organizations have expressed their dissatisfaction with US President Donald Trump's choice to impose 25 percent tariffs and additional penalties on imports from India, describing it as a setback for the Indian export sector while also pointing out potential avenues for export diversification and realignment of supply chains.

While some leaders in trade and industry cautioned about immediate disruptions, others expressed optimism that India's robust manufacturing sector, particularly in pharmaceuticals and medical equipment, would enable it to endure the repercussions and establish new trade alliances.

 

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