Trump Threatens Broader Tariff Tentacles Against Digital Taxes
US President Donald Trump with PM Narendra Modi Image credit MEA
Washington enforces additional duties on goods from India, linking the move to sanctions against Russia and “threats to US national security.”
By TRH News Desk
NEW DELHI, August 26, 2025 — The United States has announced the imposition of additional 25% ad valorem duty on imports of Indian products, effective August 27, 2025, under Executive Order 14329. The order, signed by US President Donald Trump, is aimed at addressing what Washington describes as “threats to the United States by the Government of the Russian Federation.”
In a fresh statement posted on Truth Social, Trump broadened his warning to other nations: “As the President of the United States, I will stand up to Countries that attack our incredible American Tech Companies. Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm, or discriminate against, American Technology… I will impose substantial additional Tariffs on that Country’s Exports to the U.S.A., and institute Export restrictions on our Highly Protected Technology and Chips.”
Trump’s remarks suggest that countries levying digital taxes on US tech firms may face similar tariff measures, potentially widening Washington’s trade conflict beyond India.
The Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) confirmed that the duties apply to a wide range of Indian exports, including iron and steel articles, aluminum products, passenger vehicles, SUVs, minivans, cargo vans, light trucks, and copper derivatives. Exceptions will apply to humanitarian donations such as food and medicine, as well as informational materials including publications and films.
The announcement ties India’s trade penalties to broader sanctions against Russia, expanding the scope of earlier executive orders that banned imports of Russian crude oil, petroleum, and refined products. According to the DHS, the tariffs are part of measures to counter what the US government calls “an unusual and extraordinary threat” posed by Russia’s ongoing actions in Ukraine.
Indian-origin goods already in transit before the effective date are exempt, provided importers meet documentation requirements. Products for personal use and certain exempt categories remain outside the scope of the new tariffs.
The notice, signed by US Secretary of Homeland Security Kristi Noem, underscores that the tariffs apply in addition to all other existing duties, taxes, and charges.
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