Trump Administration Imposes Additional 25% Tariff on Indian Products, Total Tariff Reaches 50%

The Donald Trump administration in the United States has formally issued a notice to impose an additional 25% (punitive) tariff on Indian products, bringing the total tariff rate to 50%. The new tariff will take effect from 12:01 a.m. Eastern Daylight Time on August 27, 2025.

According to the notice issued by the U.S. Department of Homeland Security, this additional tariff is being imposed in response to the “threat to the United States” posed by the Russian government. India has been targeted as part of this policy due to its continued purchase of Russian oil. The notice further states that the listed Indian products will be subject to the tariff for goods entered for consumption or withdrawn from warehouses starting at 12:01 a.m. Eastern Daylight Time on August 27, 2025. **Trump’s Tariff Policy** With this additional tariff, the total duty on Indian products will rise to 50%. The primary reason for this tariff hike is India’s ongoing purchase of Russian oil, which has strained relations between Washington and New Delhi. India has firmly stated that it will not compromise on its national interests. **India’s Response** Speaking at a public rally in Ahmedabad on Monday, August 26, two days before the tariff takes effect, Indian Prime Minister Narendra Modi emphasized that India will endure economic pressure and continue to strengthen its capabilities. “No matter how much pressure comes, we will keep increasing our strength to withstand it,” Modi said, assuring that his government will never allow harm to small entrepreneurs, farmers, or livestock rearers. Indirectly referring to the U.S. tariffs, Modi remarked, “Today, the politics of economic interests is evident globally, with everyone pursuing their own agendas. We can clearly see this.” He further pledged, “From the soil of Ahmedabad, from the land of Gandhi, I promise that the interests of small entrepreneurs, shopkeepers, farmers, and livestock rearers are my top priority. No matter the pressure, we will bear it.” **Why the Trade Deal Failed** According to a previous NDTV report, Trump had high expectations from India, such as greater market access, investment commitments, and large-scale purchase agreements. However, an Indian official admitted that India was not prepared to offer such concessions. For instance, South Korea secured a 15% tariff rate by promising $35 billion in investments and energy imports, along with concessions on rice and beef imports. India, however, remained steadfast in protecting its interests and did not offer significant concessions, with Trump noting that India was “very tough” in negotiations. India’s Ministry of External Affairs highlighted that while the U.S. and the European Union continue to purchase Russian goods, India is being unfairly singled out for its oil imports from Russia.