Starting Today, U.S. Cumulative Tariff Rate on Indian Goods Reaches 50%

U.S. Imposes Cumulative 50% Tariff on India Within a Month
International Electronic Business reports that on August 6 (local time), the U.S. signed an executive order imposing an additional 25% tariff on India. According to the U.S. announcement, with a few exceptions, the new tariff measure would take effect 21 days after the executive order was issued—officially coming into force at 8:00 a.m. Beijing time on August 27. Coupled with the 25% tariff on Indian goods exported to the U.S. that had already taken effect on August 7, the U.S. tariff on Indian products has now increased by 50% within a month.
Background of the Two Tariff Hikes
It is understood that the 25% tariff imposed by the U.S. on India on August 7 (Eastern Time) is a specific measure under the Trump administration’s “Reciprocal Tariffs” policy framework. The core logic of reciprocal tariffs is to claim “fair trade” and require all trading partners to align their tariff rates and non-tariff barriers (such as value-added tax, subsidies) on U.S. goods completely with those of the U.S.; otherwise, a tariff equal to the difference will be imposed. However, there are double standards in actual implementation—for example, the U.S. still imposes a mandatory 10% tariff on countries with which it has no trade deficit (e.g., the United Kingdom).

According to previous data released by the U.S. Department of Commerce, the total U.S.-India merchandise trade volume in 2024 was approximately USD 128.8 billion, with India’s trade surplus with the U.S. reaching as high as USD 45.8 billion. This has become a key reason for the U.S. government to launch a trade offensive. Prior to this, the Indian government had filed a complaint with the WTO, and experts from many countries criticized the policy for violating the principle of comparative advantage and potentially pushing up global trade costs.

The additional 25% tariff officially implemented on August 27 was imposed on the grounds that India “imports Russian oil directly or indirectly.” The Trump side stated that India not only purchases large quantities of Russian oil but also sells it in the secondary market to obtain substantial profits, providing “fuel” for Russia’s war machine. Notably, in early August this year, India’s Ministry of External Affairs publicly stated that after the escalation of the Russia-Ukraine conflict, the U.S. had actively encouraged India to import oil from Russia to enhance the stability of the global energy market.
India’s Agricultural Product Protection Policy Is One of the Main Reasons
In addition, India’s agricultural product protection policy is one of the main reasons for the U.S. to exert tariff pressure on India. According to Indian media reports, the U.S. believes that India imposes high tariffs and non-tariff trade barriers in the agricultural sector, seriously violating the WTO’s open agreements—for products such as apples and corn, India’s tariffs are as high as 39% to 50%. Furthermore, India’s phytosanitary standards have been accused by the U.S. of being “discriminatory protection measures”; in previous negotiations, the U.S. demanded that India fully open its markets for agricultural products, fishery products, and dairy products.

According to a report by The Times of India on August 25 (local time), two days before the U.S. government’s 50% tariff on India took effect, Indian Prime Minister Modi made a tough statement, stating that he supports India’s small entrepreneurs and farmers, and that no matter how much pressure it faces, the government he leads will continue to strengthen its capabilities to resist.
Tariff War Between the Two Countries: Apple May Be the Casualty…
Due to the U.S.’s two successive tariff adjustments on India, the cumulative tariff rate has reached 50%. This tariff policy will further squeeze Apple’s profit margins. However, due to Apple’s existing investments in India, it is difficult for the company to easily adjust its assembly and import business layout. Recently, Reuters reported on the impact of U.S. tariff policies on Apple: in the second quarter of 2025, Apple had already incurred an additional USD 900 million in costs due to tariffs, and it is expected to incur another USD 800 million in costs in the third quarter.

In addition, in September this year, Apple is about to launch the iPhone 17 series, and India will also start producing new models of this series. According to previous reports by Indian media, Foxconn has begun importing components from China to India for assembling Apple’s upcoming iPhone 17. Furthermore, Indian customs data shows that in June this year, approximately 10% of the components imported by Foxconn from China to India were for the iPhone 17. Based on this, industry analysts also estimate that Apple may choose to raise the price of the iPhone 17 series to pass on the costs.