US Escalates Trade Tensions: Donald Trump Slaps Additional 25% Tariff On Indian Imports, Effective August 27

Washington DC (US): The Donald Trump administration formally announced the imposition of an additional 25 per cent tariff on imports from India, effective from 12:01 am Eastern Daylight Time (9:30 am IST) on August 27, 2025. According to the Department of Homeland Security, the new duties will be levied on Indian-origin products either entering for consumption or withdrawn from warehouses for the same purpose after the deadline. The notification includes a detailed annex listing the specific rates of duty applicable to these imports.

This move follows earlier actions by Trump, who had already imposed a 25 percent tariff on Indian goods before the August 1 deadline for reciprocal tariffs. The latest escalation stems from Washington’s growing concerns over India’s continued purchase of Russian oil, which Trump claims indirectly fuels the war in Ukraine. He had earlier warned of imposing an additional 25 percent tariff unless New Delhi shifted its stance. The next round of trade talks between the United States and India, originally scheduled for August 25, has been postponed indefinitely, signaling heightened uncertainty in bilateral trade relations.

Delighted to be in Ahmedabad. Speaking at the launch of key projects that will strengthen connectivity, improve public services and drive economic growth. https://t.co/R8FqM8kdKv

— Narendra Modi (@narendramodi) August 25, 2025

PM Modi's Assurance To Farmers & Livestock Rearers

Prime Minister Narendra Modi, addressing a gathering in Ahmedabad on Monday, reassured citizens that India’s core interests would not be compromised. He stressed that the government stands firmly with farmers, small entrepreneurs and livestock rearers and will not allow their livelihoods to be endangered by international trade pressures. Modi’s statement underlined India’s stance of balancing national priorities while navigating external challenges.

India Likely Appealing For 90-Day Postponement

Meanwhile, according to a CNBC-TV18 report quoting industry sources, business bodies representing US-India trade interests have appealed to the White House for a 90-day postponement of the tariff implementation. Their appeal argues that a delay would provide valuable space for negotiations between the two countries and could help ease tensions before they escalate further.

The proposal, according to reports, highlights that India has already stepped up its purchases of American oil, thereby reducing its reliance on Russian crude. A temporary pause on tariff enforcement could allow India additional time to further diversify its energy imports while simultaneously offering the United States greater export opportunities. The suggestion has been framed as a potential 'win-win' situation for both nations, preventing immediate trade disruptions while leaving the door open for a diplomatic solution.