Donald Trump's 50% tariffs on India come into effect

US President Donald Trump

The increased 50 percent tariff on Indian goods imposed by US President Donald Trump came into effect on Wednesday at 09:31 am IST. This includes an additional 25 percent duty added to the initial 25 percent base tariff announced earlier this month.

Trump’s reciprocal 25 percent tariffs on Indian goods came into effect on August 7, alongside similar measures targeting around 70 other countries. He also announced an additional 25 percent tariff on India, as part of his broader tariff campaign targeting countries with economic ties to Russia-New Delhi being a major importer of crude oil from Moscow.

The US Department of Homeland Security (DHS) confirmed that the increased tariff rate applies to Indian goods “entered for consumption or withdrawn from warehouse for consumption” on or after 12:01 am Eastern Daylight Time on August 27, 2025.

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Indian goods will be exempt from the new 50 percent tariff if they were already shipped and en route to the US before 12:01 am (EDT) on August 27, 2025, provided they are entered for consumption or removed from a warehouse before 12:01 am (EDT) on September 17, 2025, and the importer certifies this by using the special code HTSUS 9903.01.85 when filing with US Customs.

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The tariff hike marks a major escalation in trade tensions between Washington and New Delhi, with Indian exports now facing heightened barriers in the US market.

Prime Minister Narendra Modi asserted he can't compromise on the interests of farmers, cattle-rearers, small-scale industries, cautioning "pressure on us may increase, but we will bear it".

Commenting on the move, Mark Linscott, Senior Advisor at Washington DC-based consulting firm The Asia Group, remarked: “Unfortunately, the US and India have managed to convert what appeared to be a true and unprecedented win-win on trade into a remarkable lose-lose.”

With agency inputs