The United States will impose a total 50% tariff on Indian goods starting tomorrow. The US government issued an official notification announcing an additional 25% penalty tariff. This new levy will take effect on August 27, 2025, at 12:01 AM Eastern Standard Time (9:31 AM Indian time).
President Donald Trump first announced the tariff on August 6 as a penalty for India’s oil imports from Russia. Earlier, the US had already imposed a 25% tariff on Indian goods starting August 7, citing trade imbalance. With the new penalty, the total tariff on Indian exports to the US will reach 50%.
The official US notification states that the duties will apply to goods from India. The tariff affects items imported into the United States or withdrawn from warehouses for use. The rules will apply from August 27 onward and cover all subsequent imports.
India has strongly criticized the extra 25% tariff. The Ministry of External Affairs said the move is unfair and unjustified. India emphasized that oil purchases from Russia are based on market conditions and aimed at ensuring energy security for 1.4 billion citizens. The ministry added that many countries are buying Russian oil for their own needs and called the US action improper. The Indian government confirmed it would take all necessary steps to protect its national interests against the US tariff.
Trump’s executive order explains that India is importing Russian oil both directly and indirectly. As a result, Indian goods entering the US will face a 25% extra tariff. Exemptions may apply in limited cases, such as if goods are already in transit or have arrived in the US before a certain date. Earlier, in March 2022, the US had banned all Russian oil imports. The Trump administration said India’s oil purchases provide economic support to Russia, prompting the new tariff.
Trump had also threatened Indian pharmaceutical products. On August 5, he stated in an interview that tariffs on Indian medicines could reach 250% over the next 12–18 months. Initially, the US may impose a smaller tariff on medicines, increasing gradually to 150% and then 250%. Trump emphasized that the US wants domestic production of medicines. He noted that America is heavily reliant on countries like India and China for pharmaceuticals. The tariff could affect India’s pharma exports, which include generic medicines, vaccines, and active ingredients.
In 2025, US imports of pharmaceutical products from India were valued at over $7.5 billion. According to the US Food and Drug Administration, around 40% of all generic drugs used in the US are sourced from India. India is the second-largest buyer of Russian oil, after China. Before the Ukraine conflict, India imported just 0.2% of its oil from Russia, roughly 68,000 barrels per day. By May 2023, imports had jumped to 45%, or two million barrels per day. From January to July 2025, India imported 1.78 million barrels daily. Over the past two years, India’s Russian oil purchases have exceeded $130 billion annually. These imports have helped India secure energy resources at competitive prices while supporting domestic energy needs.
The new 50% tariff by the US marks a significant escalation in trade tensions between the two countries. The impact is expected to affect multiple sectors, including energy, pharmaceuticals, and other goods exported from India to the United States.
