Trump's order on 50% tariffs for Indian imports now in force

Washington DC [US], August 27 (ANI): The 50 per cent tariffs on imports from India to the United States came into effect on Wednesday. This follows the draft notice published by the U.S. Customs and Border Protection (CBP) that stated that the order would come in effect from August 27.
According to the notice, the additional duties 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 set a new rate of duty on imports of articles that are products of India. The move follows the announcement by U.S. President Donald Trump to raise tariffs on Indian goods to 50 per cent.
The CBP said 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.
The higher duties are applicable to all Indian products that are either entered for consumption in the U.S. or withdrawn from warehouses for consumption. With this, the 50 per cent tariffs on India's imports to the U.S. are now in effect.
Earlier on 30th July US President Donald Trump announced an additional 25 per cent tariffs on India.
He stated that "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.
While Indian Prime Minister Narendra Modi on Monday remained firm as the 50 per cent US tariffs on Indian goods took effect, 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.
The US Customs notification also highlighted that that while most products from India will face the higher duties along with any other applicable charges like antidumping or countervailing duties, some items are excluded.
It covers certain products listed separately in the U.S. tariff schedule. Items made of iron and steel, including some of their derivatives, will not face the additional duty. The same applies to aluminum products and their derivatives.
Passenger vehicles such as sedans, SUVs, crossovers, minivans, cargo vans, and light trucks are also exempt, along with their spare parts. In addition, semi-finished copper products and some intensive copper derivatives are excluded from the higher tariffs.
In short, while the 50 per cent tariff broadly applies to Indian imports, key categories like iron, steel, aluminum, vehicles, parts, and copper products have been kept out of its scope.
According to a report by the Global Trade Research Initiative (GTRI), about 30.2 per cent of India's exports to the United States, valued at USD 27.6 billion, will continue to enter the U.S. market duty-free despite the imposition of higher tariffs.
It includes pharma, electronics, refined light oil, gasoline, aviation turbine fuel and others.
Pharmaceuticals account for the largest share at USD 12.7 billion, covering a wide range of medicines including cancer drugs, immune suppressive, cardiovascular, antidiabetic, and pain medicines.
Electronics exports worth USD 8.18 billion, such as smartphones, switching and routing equipment, integrated circuits, chips, wafers, and solid-state storage devices, are also exempt.
Other duty-free categories include refined light oil, gasoline, and aviation turbine fuel worth USD 3.29 billion, books and brochures worth USD 165.9 million, and plastics valued at USD 155.1 million.
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)