US Doubles Tariffs on Indian Imports to 50%, Tyres Hit

The United States will raise total duties on most Indian imports to 50% from 27 August 2025, after President Donald Trump signed an order adding a fresh 25% levy that stacks on July’s 25% “reciprocal” tariff. The move, justified under national-security powers linked to Russia’s war in Ukraine, targets countries buying Russian oil, naming India specifically. Tyres are among the Indian export categories expected to be affected, though exposure varies by manufacturer.

What’s Changed and When

• Two layers of duty:
  • 25% “reciprocal tariff” on India took effect 7 August 2025.
  • Additional 25% duty on all articles of India tied to Russian oil purchases starts 27 August 2025 (21 days after signature on 6 August). Combined, many imports now face 50%.
• Limited carve-outs: The 25% Russia-related surcharge stacks with the July tariff except for goods listed under Annex II of the April reciprocal-tariff order; most mainstream products remain in scope.

India’s foreign ministry called the additional tariff “unfair, unjustified and unreasonable.”

Tyre Sector: Where the Real Exposure Is

Indian tyre exports have been growing: ATMA reports FY2024/25 tyre exports rose 9% year-on-year to ₹25,051 crore. But the US is a key destination, industry and trade reports place the US as the largest single market for Indian tyres in recent periods, meaning a 50% border tax will squeeze margins and could defer shipments.

• Exporter mix matters: Some players skew heavily to Europe. For example, BKT’s FY25 update shows Europe accounts for ~50% of export turnover, offering partial insulation from US-specific shocks. See our coverage: BKT’s FY25 report confirms growth in OTR tyres
• Wider market trend: US tariff actions have already been reshaping tyre flows this year; see our analysis: Trump’s 2025 tariffs deepen tyre market disruption

Beyond Tyres: Trade Hits and the 21-Day Window

The White House order cites national security and Russia sanctions policy. It establishes a template to extend similar measures to other countries buying Russian oil, while allowing goods already in transit some relief. India has signalled it will “take all actions necessary to protect national interests,” but a negotiated reprieve before 27 August appears uncertain.

Analysts now warn that India’s US-bound exports could fall sharply in labour-intensive segments such as textiles, jewellery and seafood, with some estimates suggesting losses that could halve shipments if the 50% rate persists.

What UK and European Buyers Should Watch

• Pricing: US-bound Indian volumes may be rerouted to Europe/UK, easing short-term supply tightness but pressuring prices in some PCR/TBR lines.
• Lead times: Exporters juggling alternative routes could lengthen delivery cycles this autumn.
• Specs & compliance: Ensure EU/UK labelling and customs documentation is airtight when switching suppliers or lanes. See our previous explainer on tightening rules. EU ramps up tyre labelling enforcement

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Tagged with: US tariffs on Indian tyres, 50% tariff India, Trump tariffs 2025, Indian tyre exports, IEEPA tariff, US-India trade, Russian oil sanctions, tyre manufacturers India, import duties, trade policy, supply chain disruption, EU anti-dumping

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