25% US Tariff on Indian Goods Comes Into Force From Today

August 7, 2025 – The United States has officially enforced a 25% tariff on Indian imports, marking the first phase of a broader trade realignment under  President Donald Trump’s revised policy. India now faces one of the steepest tariff imposed on it by USA.

Initial Tariff Now Active on Indian Goods

The first tranche, a 25% “Reciprocal Tariff, Adjusted,” stems from an executive order titled Further Modifying The Reciprocal Tariff Rates. It applies to all Indian goods imported for U.S. consumption or withdrawn from bonded warehouses, effective from 12:01 a.m. EDT, seven days after the order was signed.

Second Tariff Targeting Russian Oil Purchases

A second 25% tariff — specifically penalizing India’s continued imports of discounted Russian oil — was announced a day later. It comes into force on August 27, 2025, raising India’s total tariff exposure to 50%, among the highest under the new U.S. framework.

Geopolitical Undertones Shape Tariff Strategy

The policy divides countries into two broad categories: those actively cooperating with U.S. trade and defense goals, and those perceived as falling short. While some nations are working toward new agreements with Washington, others like India are being penalized for insufficient alignment.

Trump cited India’s oil trade with Russia as a key factor, calling it incompatible with U.S. strategic interests.

Tariff Snapshot: Selected Countries

While India faces the steepest hike, other nations are also affected — though to a lesser degree:

• Japan – 15%
• United Kingdom – 10%
• Pakistan – 19%
• Sri Lanka – 20%
• Laos – 40%
• Myanmar – 40%

Implications for India-U.S. Trade

With the 50% tariff set to be fully enforced by August 27, New Delhi is under mounting pressure to recalibrate its trade priorities and diplomatic stance. Key Indian export sectors – including pharmaceuticals, textiles, and auto components – are expected to feel the impact, potentially triggering a policy rethink.

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