On August 27, 2025, the United States increased tariffs on Indian imports from 25% to 50%, with the additional 25% tariff taking effect from that date. This move follows President Donald Trump's earlier announcement linking the tariff hike to India's continued purchase of Russian crude oil. The announcement led to a sharp decline in Indian stock markets on August 26, with the BSE Sensex falling by 849 points below 81,000 and the NSE Nifty 50 dropping by 225 points amid widespread selling. The market capitalization of BSE-listed companies decreased by approximately 5 lakh crore rupees, from 455 lakh crore rupees on Monday to 449.4 lakh crore rupees after the decline. The US Department of Homeland Security stated that Indian goods entering consumption or withdrawn from warehouses on or after 12 a.m. Eastern Daylight Time on August 27 would be subject to the increased tariff. Indian goods already in transit before this deadline are exempt if cleared by September 17, 2025. The tariff increase targets sectors including textiles, seafood, gems, jewelry, and leather, while pharmaceuticals, electronics, and petroleum products are exempt from the additional duty. The US administration cited national security concerns related to India’s trade with Russia as the rationale… (Updated 27 Aug 2025, 06:38 IST; source: link)