The United States imposed new tariffs on imports from India in August 2025, adding a fresh 25% country‑wide duty on most Indian‑origin goods on top of a 10% baseline tariff that applies to all countries. Product surcharges remain in place, including +50% on metals and +25% on autos & auto parts, with some commercial‑vehicle parts at +50%. The measures start for most entries on August 27–28, 2025, and will raise prices and reshape supply chains.
Smartphones, pharmaceuticals, and energy/renewables are exempt. For everything else, U.S. Customs will add together the normal Most Favored Nation (MFN) rate from the Harmonized Tariff Schedule, the 10% baseline, the 25% India add‑on, any product surcharge such as +50% on metals or +25% on autos, and any anti‑dumping or countervailing duties. These percentages are added to the customs value; they are not compounded. Goods already on the water before the effective date and entered before September 17, 2025, can clear without the extra 25% India charge.
Policy changes and timing
The White House announced the move in early August 2025, with notices dated August 6–7. The effective window is August 27–28, 2025, at 12:01 a.m. Eastern for entries for consumption. The administration describes the measure as “reciprocal,” setting a +25% duty on most goods from India, on top of the +10% baseline applied to all imports.
Product surcharges remain in force:
– +50% on steel, aluminum, and copper
– +25% on autos & auto parts
– +50% on some commercial‑vehicle parts
Customs calculation is straightforward: add the applicable rates (MFN + 10% baseline + 25% India add‑on + any product surcharge + AD/CVD) to the product’s customs value. Importers should:
– Verify MFN rates in the HTS
– Check for any anti‑dumping (AD) or countervailing (CVD) orders that may apply to chemicals and metals
Official guidance on duties and fees is available from U.S. Customs and Border Protection at https://www.cbp.gov/trade/basic-import-export/customs-duties online.
Important deadlines:
– Effective entries: August 27–28, 2025 (12:01 a.m. Eastern)
– Grace for shipments loaded before the effective date and entered before September 17, 2025
Price effects and sector shifts
The direct retail effects are significant and easy to illustrate with examples:
- Cotton T‑shirt (MFN ≈ 16.5%): retail rises from $7.28 to $9.47 (~+30%)
- Gold jewellery (MFN ≈ 5.5%): price jumps from $791 to $1,054 (+$263)
- Passenger‑vehicle auto part (MFN ≈ 2.5%): cost rises from $1,230 to $1,650 (+$420)
- Steel coil (MFN = 0%, but subject to +50% metals + +10% baseline): from $1,000/ton to $1,280/ton
Extreme remedy examples:
– Chemicals like melamine with AD/CVD rates above 500% can push a shipment from $1,266/ton to $7,348/ton.
As one source summarized, tariffs act like speed bumps: a $20 shirt could become $26, a gold ring could cost about $260 more, and a $1,000 car part could be about $420 more before reaching consumers.
Sectoral implications
- Gems & jewellery (approx. $10 billion yearly U.S. exports from India) may see buyers shift to Turkey, Thailand, or Vietnam.
- Textiles & apparel, already subject to double‑digit MFN rates, could push U.S. retail prices up by 20–35%.
- Auto components face +25% for passenger parts and up to +50% for some commercial parts, encouraging supply‑chain diversification.
- Metals face roughly 60%+ total duties in many cases, squeezing spot sales unless prices are adjusted.
Two categories are broadly protected from the India add‑on:
– Pharmaceuticals
– Smartphones
These exemptions limit shocks in two of India’s largest export lines, while other sectors face sharply higher landed costs.
According to analysis by VisaVerge.com, the extra 35% in new tariffs layered on top of MFN rates could lift apparel prices by 20–35% in U.S. stores and push buyers to tariff‑free partners.
Broader effects highlighted include:
– For India:
– Possible job losses in export‑driven sectors (textiles, gems, auto components)
– Margin pressure for jewellery businesses tied to gold prices
– Policy options: WTO disputes, carve‑out talks, or accelerated free‑trade negotiations
– For the United States:
– Higher prices for apparel, jewellery, and manufactured goods
– Higher input costs for manufacturers using Indian parts
– Sourcing shifts toward Mexico, Thailand, and Vietnam
– Potential gains for some upstream metal producers, but pain for downstream buyers
Officials present the move as a national‑security and trade equity measure. President Trump and senior aides cite India’s continued purchases of Russian oil as part of the rationale. Indian officials call the step punitive and harmful to talks. Industry groups on both sides warn of higher costs, job losses, and supply‑chain strain.
Practical steps for importers (recommended checklist)
- Check the MFN rate in the HTS for each product.
- Add the +10% baseline, the +25% India add‑on, and any product surcharge.
- Screen for AD/CVD orders, especially on chemicals and metals.
- Confirm whether smartphones, pharmaceuticals, or renewables qualify for exemption.
- Verify transit timing: goods loaded before August 27 and entered before September 17 avoid the India add‑on.
- Renegotiate terms with suppliers to reflect the new duty load and share cost risk.
- Revisit sourcing options in Mexico, Thailand, or Vietnam where tariffs may be lower.
For autos & auto parts specifically:
– Plan for +25% on passenger‑vehicle parts and up to +50% on some commercial‑vehicle parts.
– U.S. assemblers that rely on Indian components may face tighter budgets and longer lead times as suppliers rethink routing and terms.
Small online sellers who import direct will likely feel the change quickly: higher landed costs can shrink margins unless retail prices rise. Many small sellers are expected to switch to tariff‑free or lower‑tariff sources.
Legacy measures and cumulative effects
These India‑specific charges layer on top of earlier measures:
– Metals have carried extra duties since 2018 under Section 232.
– In April 2025, melamine faced AD/CVD orders that in extreme cases top 500%.
The new India duty stacks with those legacy measures, increasing complexity and potential cost for affected shipments.
Policy responses and outlook
New Delhi is considering responses that could include:
– WTO dispute settlement
– Fresh trade negotiations seeking carve‑outs
– Accelerated free‑trade deals with other partners
Washington has signaled that rates could change if policy objectives are met, but importers should act based on the rates currently in force.
For official customs guidance and details on duties and fees, consult U.S. Customs and Border Protection at https://www.cbp.gov/trade/basic-import-export/customs-duties.
This Article in a Nutshell
The August 2025 U.S. tariffs add a 25% India duty atop a 10% baseline, plus product surcharges. Exemptions include smartphones and pharmaceuticals. Effective August 27–28, 2025; goods loaded earlier and entered by September 17 avoid the India add‑on. Importers must recalculate HTS MFN, screen AD/CVD, and consider alternative sourcing.
