As of October 2025, US tariffs on India are reportedly around 15–16%, a significant reduction from the previous 50% level, according to this CNBC article, this The Economic Times article, and this Business Today article. This is due to a potential trade deal between the two countries, with tariffs expected to be finalized after the reduction in India's Russian oil purchases. Previously, tariffs had reached 50% on certain goods, impacting exports like textiles, gems, and auto parts.
Current situation (as of October 2025)
Tariff reduction: India and the US are reportedly close to a historic trade deal that would lower US tariffs on Indian goods from the previous 50% level to an estimated 15–16%.
Trade deal context: The potential deal follows India's agreement to reduce its oil purchases from Russia, according to this CNBC article.
Impact on Indian exports: The previous high tariffs severely impacted exports, with the leather industry, for example, expecting a significant drop in revenue. The new tariffs are expected to reverse this trend.
Background
Previous jigh tariffs: US tariffs on India reached 50% on certain products in mid-2025, affecting sectors like textiles, gems, and auto parts, notes ClearTax and CNN.
Previous reciprocal tariffs: In response to US tariffs, India had also imposed its own tariffs on certain US goods, though these are reportedly unchanged for now, per ClearTax.
As of October 2025, the U.S. has imposed a 50% tariff on most imports from India, following a diplomatic and trade dispute. However, ongoing negotiations could lead to a significant reduction in these tariffs.
Current
tariff status
50%
rate: A 50% tariff, one of the highest imposed on any U.S. trading partner,
applies to most goods from India. This rate came into effect on August 27,
2025, and includes two parts:
An
initial 25% "reciprocal" tariff imposed in early August.
An additional 25% penalty over India's continued purchase of Russian oil.
Exempted
items: The tariffs do not apply to certain critical sectors to preserve U.S.
supply chains. These include:
Pharmaceuticals
Semiconductors
Energy
resources
Critical minerals
Most
affected sectors: Industries hit hardest by the tariffs include:
Textiles
and apparel
Gems
and jewelry
Leather
and footwear
Auto
parts
Various other manufactured goods
Diplomatic
and trade negotiations
Negotiations underway: Citing sources, multiple reports indicate that the U.S. and India are close to reaching a trade deal that could slash the tariff rate to 15–16%.
Terms
of the deal: As part of the potential agreement, India may agree to gradually
decrease its imports of Russian oil. In exchange, the U.S. is expected to offer
concessions, including increased market access for U.S. agricultural goods like
corn and soymeal.
Upcoming
meeting: An agreement could be announced at the Association of Southeast Asian
Nations (ASEAN) summit, scheduled for late October 2025, where U.S. President
Donald Trump and Indian Prime Minister Narendra Modi are expected to meet.
Supreme Court challenge: The tariffs' legal foundation is also being challenged. The U.S. Supreme Court is scheduled to hear a case in early November 2025 that could potentially overturn the "reciprocal" tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
https://www.google.com/search?q=us+import+tariffs+on+india+october+2025
Norb Leahy, Dunwoody GA Tea Party Leader
No comments:
Post a Comment