New Delhi [India], August 28 : Former senior diplomat Mahesh Sachdev on Wednesday reacted to the additional 25 per cent tariffs imposed by the United States on Indian goods from August 27, calling it a "serious setback but not exactly a disaster."
"On the occasion of Ganesh Chaturthi, President Donald Trump has decided to usher in a new era in the US-India bilateral commercial relationship... $60.2 billion of Indian exports are going to be subject to 50 per cent tariffs; 3.6 per cent will be subject to 25 per cent tariffs. Approximately $30 billion will be exempt from tariffs," Sachdev said.
He highlighted the sectors most impacted by the tariff hike, noting, "Textiles, gems and jewellery, and seafood are going to take a serious hit. They are labour-intensive... To a lesser extent, leather and footwear will also be affected..."
Calling it a setback for Indian exporters, Sachdev stressed, "It is a serious setback but not exactly a disaster." He made the remarks as the 50 per cent tariffs on imports from India to the United States came into effect on Wednesday, following the draft notice published earlier by the U.S. Customs and Border Protection (CBP) stating the order would apply from August 27.
According to the notice, the additional duties are being imposed to implement President Trump's Executive Order 14329 of August 6, 2025, titled "Addressing Threats to the United States by the Government of the Russian Federation." The order set a new duty rate on imports of Indian products, following Trump's announcement to raise tariffs on Indian goods to 50 per cent.
The CBP further said the Secretary of Homeland Security has determined it necessary to modify the Harmonized Tariff Schedule of the United States (HTSUS) in line with the executive order. As a result, higher duties now apply to all Indian products either entered for consumption in the US or withdrawn from warehouses for consumption.
Earlier on July 30, Trump had announced an additional 25 per cent tariff on India. Explaining the decision, he stated on Truth Social, "Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the world, and they have the most strenuous and obnoxious non-monetary trade barriers of any country. Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE - ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25 per cent, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!"
Meanwhile, Indian Prime Minister Narendra Modi remained firm as the 50 per cent US tariffs took effect, saying his government would find a way forward regardless of economic pressure from Washington.
"No matter how much pressure comes, we will keep increasing our strength to withstand it. Today, the Atmanirbhar Bharat Abhiyan is getting a lot of energy from Gujarat and behind this are two decades of hard work...," PM Modi said during a public address in Ahmedabad on Monday.