Tensions between the US and India over tariffs have now reached a peak. From Wednesday (August 27) at 9:30 AM IST, the US has imposed up to 50% additional tariffs on a large share of Indian exports. President Trump has alleged that by purchasing more oil from Russia, India is indirectly supporting the Ukraine war. This move is expected to impact the Indian economy as well as common citizens.

The US has excluded nearly 30% of India’s exports (worth around $27 billion) from the additional tariffs. This includes steel, copper, aluminum, pharmaceuticals, and electronics. Additionally, auto parts will face only a 25% tariff, accounting for about 4% of India’s total exports (roughly $3.5 billion).

The US has imposed a 50% tariff on 66% of India’s exports. The most affected sectors will be textiles, gems and jewelry, seafood, leather, handicrafts, machinery, carpets, and furniture.

Due to India’s purchase of crude oil and military equipment from Russia, an additional 25%–50% tariff has been imposed on Indian goods from August 27. According to a draft order issued by the US Department of Homeland Security, goods imported or released from warehouses after August 27 (12:01 PM EDT) will face these new tariffs. However, if the goods are approved for use in the country or released before September 17, 2025 (12:01 PM EDT), importers can claim exemptions by declaring a special ‘code’ with US Customs.