International News: A major shake-up has hit international trade. The United States has announced that tariffs on Indian imports will now double. Until now, a 25% duty was applied, but President Donald Trump has ordered it to rise to 50%. This decision comes at a time of growing global tensions, with Washington also expressing anger over India’s continued oil purchases from Russia.
Draft Notice Issued by Homeland Security
The US Department of Homeland Security (DHS) has released a draft notice detailing the new tariff rules. According to the notice, the increased duty will apply to all Indian products imported for consumption or removed from warehouses after 12:01 AM Eastern Daylight Time on 27 August 2025. Shipments processed after this date will be subject to the higher tariff.
Link to Global Geopolitical Developments
The timing of this announcement coincides with stalled efforts to reach a peace agreement between Russia and Ukraine. The US has cited India’s continued purchase of Russian oil as a factor behind the tariff increase. Earlier, Indian goods were subject to a 25% tariff, which was set to expire on 27 August. The new 50% rate marks a significant escalation.
Impact on Indian Exporters
Experts warn that the tariff increase will affect Indian exporters, particularly small and medium enterprises heavily dependent on the US market. The change may influence pricing, supply chains, and overall competitiveness. Exporters may need to explore alternative markets, adjust contracts, or absorb part of the cost to maintain their position.
Economic Pressure Through Targeted Tariffs
The US aims to apply economic pressure strategically, targeting specific imports without imposing blanket restrictions on all trade with India. This demonstrates how international trade policies are closely tied to geopolitical and strategic considerations.
India’s Response and Strategic Outlook
Indian authorities are monitoring developments closely. Industry bodies are preparing to assess the financial and operational impact and are advising exporters on risk mitigation. The move underscores the importance of agility and resilience in India’s trade strategies amid evolving global politics.
