50% tariffs on Indian goods: goods hit, services different
India's goods exporters face one of the steepest US tariff rates. Digital services — software, design, development, support — cross borders differently and aren't subject to customs tariffs.
By the Xuru Technologies team · 12 August 2025
Key takeaways
- On 6 August 2025 the US ordered an additional 25% tariff on Indian imports, linked to India's purchases of Russian oil, effective later in August.
- Combined with the earlier 25% reciprocal tariff, many Indian goods face 50%.
- Labour-intensive sectors such as textiles, jewellery and seafood are among the most exposed.
- Customs tariffs apply to goods; cross-border digital services like web development are not tariffed at the border.
For Indian manufacturers selling to America, this is a serious shock. For businesses abroad working with Indian technology partners, the picture is different.
What happened
Herbert Smith Freehills Kramer and KPMG summarised the executive order and its timing, with certain exemptions for specified products.
What it means
- Indian goods exporters need new markets, pricing strategies and stronger direct channels.
- US importers of Indian goods face higher costs and may look elsewhere.
- Digital services remain governed by contracts and tax rules, not customs tariffs.
- Diversification is wise for everyone exposed to a single trade route.
For Indian exporters: building new channels
| Step | Detail |
|---|---|
| New markets | Target the UK, EU, Middle East and Asia with dedicated pages |
| B2B website | Catalogue, certifications and enquiry forms for overseas buyers |
| Trust signals | Export licences, quality standards and buyer references |
| Languages | Key pages in buyers' languages |
Frequently asked questions
Are IT and web development services subject to these tariffs?
US customs tariffs apply to imported goods. Digitally delivered services are not tariffed at the border, though tax and contract terms still apply. Take professional advice for your case.
Which Indian sectors are most affected?
Labour-intensive goods exports such as textiles and apparel, gems and jewellery, leather and seafood were widely reported as most exposed.
How can exporters reduce dependence on the US?
By building visibility and direct relationships in other markets, starting with a strong international B2B website.
Websites that open new export markets.
B2B and export websites for Indian manufacturers, and dependable digital services for buyers worldwide.
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