<h1>US Imposes Extra 25% Tariff on Indian Goods Over Russian Oil, Hitting Key Export Sectors Hard</h1> The United States has imposed an additional 25 percent tariff on Indian goods, raising total duties to 50 percent as a penalty for India's continued purchase of Russian oil. This tariff, effective from August 7 and increasing further on August 27, targets sectors including leather, footwear, gems and jewellery, textiles, shrimp, chemicals, and machinery. Industry representatives report that these tariffs will significantly increase costs for Indian exporters, potentially reducing US-bound exports by 40 to 50 percent and placing Indian products at a competitive disadvantage compared to other countries. Exporters, especially MSMEs, face challenges absorbing the increased costs, risking loss of clients and market share. Negotiations for a bilateral trade agreement between the two countries continue, with hopes that an interim deal by late 2025 may address tariff issues, though key areas like agriculture and GM products remain contentious.