In August 2025, the US increased tariffs on many imports from India, primarily in response to India's continued purchase of Russian oil amidst geopolitical tensions. Initially, a 25% tariff on Indian goods took effect on August 7, 2025. An additional 25% tariff was announced on August 6, potentially raising the total tariff to 50% for most Indian imports by August 27, 2025.
The
tariffs primarily affect sectors like textiles, gems and jewelry, leather, and
chemicals, among others. However, pharmaceuticals, electronics, energy
resources, and critical minerals are exempt.
These
tariffs are causing concerns in India, with potential losses in exports and a
decline in GDP growth. Small and Medium Enterprises are expected to face
reduced competitiveness. A grace period allows goods shipped before August 7
and arriving before October 5 to be subject to the initial 25% tariff.
This measure is seen as linked to geopolitical considerations and US pressure on India's energy ties with Russia. India has criticized the tariffs and is exploring ways to lessen the impact.
As of August 11, 2025, the United States has imposed a 50% tariff on a broad range of goods imported from India.
Here's
a breakdown of the situation:
· Tariff
Structure: The current 50% tariff is the result of two separate measures:
o An initial 25% tariff
on Indian goods, effective since August 1, 2025.
o An additional 25%
tariff, announced on August 6th and set to take effect by August 27th.
· Affected
Products: This significantly impacts Indian exports across various
sectors, including textiles and apparel, gems and jewelry, leather and
footwear, marine products, chemicals, and auto parts.
· Exemptions: Notably,
certain key products like pharmaceuticals, electronics, semiconductors, energy
resources (crude oil, natural gas), and critical minerals are exempt from these
tariffs. This is significant because India is a major supplier of generic drugs
to the US, accounting for almost 40% of the generic drugs used in the country.
· Reason for
Tariffs: The tariffs are justified by the US under Sections 232 (national
security) and 301 (unfair trade practices) of US trade laws. However, a major
contributing factor is India's continued purchase of Russian oil amidst
geopolitical tensions stemming from the Russia-Ukraine conflict.
· India's Response: India has condemned the tariffs as "unfair, unjustified, and unreasonable" while also pursuing a multi-pronged response. India has highlighted the importance of these oil purchases for its energy security and has pointed to perceived double standards by the US and EU regarding trade with Russia. The Indian government is also engaging in diplomatic efforts and exploring options to mitigate the impact on its exports. Some Indian groups have also called for boycotts of American brands.
This situation represents a significant escalation in trade tensions between the US and India and has raised concerns about its potential impact on India's economy and its overall relationship with the US. While the tariffs are intended to pressure India to align with US foreign policy objectives, it remains to be seen how the situation will ultimately evolve.
https://www.google.com/search?q=current+us+tariffs+on+india+imports+August+11+2025
Comments
India has expressed interest in buying US Oil and Natural Gas to reduce the $45.7 billion US Trade Deficit. India is currently a member of BRICS and has been buying Oil and Natural Gas from Russia. India is currently dealing with Christian persecution by Hindus prompted by a Christian resurgence in the North.
Norb Leahy, Dunwoody GA Tea Party Leader
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