A U.S. tariff increase raises duties on some Indian goods to 50%. What changed, who’s affected, and how Indians can respond—without panic.
Bengaluru | August 12, 2025
On August 7, 2025, the United States announced an extra 25% tariff on selected Indian goods, taking the total duty on some items to 50%. The move is being rolled out in two steps, with certain lines reaching 50% around August 27–28, 2025. Washington has publicly linked the action to India’s purchases of Russian oil. This is not a 50% duty on everything: current reporting indicates smartphone/electronics assembly and many pharmaceutical items are presently not included, while textiles, gems & jewellery, and some auto parts face the steeper rise.
India’s finance ministry has told Parliament that about 55% of India’s exports to the United States could be touched by the measures—enough to worry MSMEs, handloom weavers, and large manufacturers even though the increase isn’t universal.³
India’s political leadership has responded firmly, stressing that the interests of farmers, exporters, and growth will not be compromised while talks continue.
Why this matters
- Jobs and orders: Price-sensitive sectors like everyday clothing and jewellery may face tighter margins and tougher buyer negotiations.
- Cash flow: Shipments and contracts that overlap with late August may need quick price and term updates to avoid losses.
- Resilience: Areas that are not included (such as many pharma lines and phone assembly) can help balance the shock if factories shift focus quickly.
Proof box: three numbers to know (now)
- 7 Aug 2025: first step announced.
- 27–28 Aug 2025: selected lines due to reach 50% under the staged lift.
- ≈55%: share of India’s U.S.-bound merchandise exports touched, per the finance ministry to Parliament.
Sandeep N Setty’s view
That’s where Dr. Sandeep N. Setty – a Bengaluru-based advisor to business families and an internationally recognised estate-planning strategist—steps in. For nearly two decades he has worked with high-net-worth families, business owners, founders, and policymakers on cash-flow, design, liquidity, asset structuring, and cross-border decisions. His approach is simple: protect cash flow, keep jobs, and invest for resilience, rather than chasing headline wealth alone.
“A nation’s strength in tough times comes from the unity of its people. Every rupee you spend, invest, or save wisely can become part of India’s defence against global economic pressures.” — Sandeep N Setty
10 simple ways Indians can help (right now)
- Buy Indian, Live Indian — Prefer homegrown brands across categories.
- Support MSMEs and artisans — Every purchase helps keep a job and a craft alive.
- Cut non-essential imports — Save foreign exchange for critical needs.
- Promote #VocalForLocal — Share real, fact-checked stories of Indian brands.
- Back domestic manufacturing — Choose companies creating jobs in India.
- Open doors for exporters — Introduce Indian sellers to buyers in Africa, Southeast Asia, or Latin America.
- Invest locally — Within your comfort level, back Indian funds or startups.
- Choose Indian services — From travel to tech, keep money circulating at home.
- Teach financial independence — Share simple, sustainable money habits at home and work.
- Stay informed and engaged — Support fair trade and policies that protect local industry.
About the author
Dr. Sandeep N. Setty is a Chartered Trust & Estate Planner, 4× author, 40 Under 40 honouree, and advisor to business families on cash-flow design, asset structuring, and planning across generations. He has guided founders, VCs, and public figures on cross-border structures and liquidity strategy, helping people live wealthy lives now while building legacies for tomorrow.