India braces for export hit as US imposes steep new tariffs from Wednesday

Indian exporters are bracing for disruptions after a U.S. Homeland Security notification confirmed Washington will impose an additional 25% tariff on all Indian-origin goods from Wednesday, ramping up trade pressure on the Asian nation.

Indian exports will face U.S. duties of up to 50% - among the highest imposed by Washington - after President Donald Trump announced extra tariffs as a punishment for New Delhi's increased purchases of Russian oil earlier in August.

The new duties will apply to goods entering the U.S. for consumption or withdrawn from warehouse for consumption from 12:01 a.m. EDT on Wednesday or 9:31 p.m. IST, according to the Homeland Security notice.


The Indian rupee weakened 0.17% to 87.7275 per U.S. dollar in opening trade, even as the greenback declined against many other currencies.

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The notification said exceptions would include in-transit shipments with proper certification, humanitarian aid, and items covered under reciprocal trade programs.

The notification reiterated that the action was in response to India's indirect support of Russia's military incursion into Ukraine.

India's Commerce Ministry did not immediately respond to an email seeking comment on the latest notification.

"The government has no hope for any immediate relief or delay in U.S. tariffs," said a Commerce Ministry official, who spoke on condition of anonymity because they were not authorised to speak to media.

Exporters hit by tariffs would be provided financial assistance and encouraged to diversify to alternative markets including China, Latin America and the Middle East, the official added.

"The government has identified nearly 50 countries for increasing Indian exports, particularly of textiles, food processed items, leather goods, marine products."

Indian Prime Minister Narendra Modi has vowed not to compromise the interests of the country's farmers even if there is a heavy price to pay. Modi is also taking cautious steps to ease the relationship with China with his first visit in seven years planned for the end of the month.