The United States’ higher duties on Indian imports took effect at 12:01 a.m. EDT on Wednesday, lifting rates on many categories to as much as 50% after the White House layered a new 25% penalty over an earlier 25% “reciprocal” tariff.
The action is explicitly tied to India’s continued purchases of Russian oil. A U.S. Customs and Border Protection notice confirms that the additional 25% applies to articles “that are the product of India” entered for consumption on or after Aug. 27, in addition to the prior India-specific tariff.
CBP provided a three-week in-transit exemption for shipments loaded before the deadline and arriving by 12:01 a.m. EDT on Sept. 17, and it exempted categories already covered by separate national-security tariffs, such as steel, aluminum and passenger vehicles.
The legal basis is Executive Order 14329 (Aug. 6) issued under IEEPA, with implementing details published in the Federal Register on Aug. 27.
The new rates hit garments and textiles, gems and jewelry, footwear, furniture, seafood (notably shrimp), and select auto components, while smartphones, pharmaceuticals and much energy/renewables equipment were flagged as exempt in earlier briefings and product lists.
“It’s real easy… India can get 25% off tomorrow if it stops buying Russian oil...,” said White House trade adviser Peter Navarro.
India’s junior foreign minister Kirti Vardhan Singh responded that the government is taking steps to shield the economy and will continue to source energy “from whichever country benefits us.”
Estimates of exposure differ: exporter groups cited a risk to about 55% of India’s roughly $87 billion in 2024 merchandise exports to the U.S., while a Washington think-tank cited by the Washington Post put the share nearer two-thirds and projected shipments to fall to roughly $50 billion.
Total U.S.–India goods trade was $129 billion in 2024, with a U.S. deficit of $45.8 billion.
Analysts warned that sustained 50% rates could jeopardize up to 2 million jobs in export hubs, though strong domestic demand may soften the blow. Auto-parts impacts split, with parts tied to cars and small trucks under 25% while components for commercial vehicles can face 50%. Sector exemptions for smartphones and pharma stand, and CBP reiterated that goods already under Section 232 (steel, aluminum) and specific copper items are outside the new 25% add-on.