US issues notice to India as Trump’s 50% tariff ‘penalty’ kicks in tomorrow

The notice stated that the increased levies would hit Indian products “that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on August 27, 2025.”

On Sunday, US Vice President J D Vance told NBC News that President Trump had applied “aggressive economic leverage”, including “secondary tariffs on India” to “make it harder for the Russians to get rich from their oil economy” and force Russia to stop bombing Ukraine.

The notice also stated that such products imported from India with an additional duty beginning August 27 will be “admitted as “privileged foreign status,” into the United States foreign trade zone.

On August 6, 2025, Trump issued an executive order imposing an additional 25 per cent tariffs on Indian imports to the US over the country’s purchase of oil from Russia, taking the total duty on such goods to 50 per cent. Citing “threats to the United States by the Government of Russian Federation,” as rationale behind Trump’s imposition of additional 25 per cent duty on import of goods from India, the Secretary of DHS, on August 6 this year, determined “appropriate action is needed to modify” the tariff schedule of the US to implement the tariffs.

Delhi, in response to US’ allegations that India’s purchase of Russian crude oil is funding Moscow’s war in Ukraine, rejects the claim, calling secondary tariffs as “unfair, unjustified and unreasonable.” The Ministry of External Affairs (MEA) also declared that India will take “all actions necessary to protect its national interests”.

Responding to the speculations over India’s purchase of Russian oil, Vinay Kumar, Delhi’s ambassador to Moscow, clarified on Monday that “Indian companies will continue buying (oil) from wherever they get the best deal”.

Prime Minister Narendra Modi has also assured “no matter how much pressure comes, we will keep increasing our strength to withstand it”.