US issues notice about additional 25 pc tariffs on Indian imports from Aug 27
Notice comes as PM Modi asserts India will withstand the pressure of tariffs; meanwhile, Trump issues fresh tariff threat over digital service taxes on US firms
The US government has issued a formal notice about the imposition of an additional 25 per cent tariffs on Indian imports effective 12.01 am (EST) August 27 as a punitive measure for the purchase of Russian oil.
The notice was issued by the Department of Homeland Security, and said the additional duties were in response to “threats to the United States by the Government of the Russian Federation”, and that India was being targeted as part of that policy.
The notice said that the duties “are effective with respect to products of India that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12.01 am Eastern Daylight Time on August 27, 2025”.
We will bear pressure: Modi
Prime Minister Narendra Modi on Monday (August 25), addressing a gathering in Ahmedabad, asserted that he cannot compromise on the interests of farmers, cattle-rearers, and small-scale industries.
“The pressure on us may increase, but we will bear it all,” said the prime minister.
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“All of us should follow the mantra of buying only ‘made in India’ goods. Businessman should keep a big board outside their establishments, saying they sell only ‘swadeshi’ goods,” he said.
Trump’s latest tariff threat
Trump, meanwhile, issued a fresh threat on Monday to impose “substantial” new tariffs to restrict the export of American chips to those countries that impose digital services taxes and related regulations on US technology firms.
Trump said he would stand up to countries that attack “incredible American Tech companies”.
“Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm or discriminate against American technology. They also, outrageously, give a complete pass to China’s largest Tech companies. This must end, and end NOW,” posted Trump on his Truth Social platform.
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He added that unless these discriminatory actions are removed, he would impose substantial additional tariffs on “that country’s exports to the USA”.
Trump continued that America and American technology companies are neither the “piggy bank nor the doormat” of the world any longer.
“Show respect to America and our amazing Tech Companies, or consider the consequences,” Trump posted.
Digital taxes
Digital taxes have emerged as a new area of friction for the US in its trade negotiations with other nations. In June, it announced that it would cut off all trade talks with Canada over digital taxes.
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Trump’s latest warning has come a week after America and the European Union, in a joint statement, agreed to address unjustified trade barriers and not to impose customs duties on electronic transmissions. The EU also said it would not adopt network usage fees.
(With agency inputs)