Lagatar24 Desk
New Delhi: The United States has announced steep 50% tariffs on Indian products effective from August 27, 2025, under President Donald Trump’s trade directive. However, the Department of Homeland Security has outlined three conditions under which some Indian goods may escape the additional duty.
Conditions For Exemption From 50% Tariff
Indian products will not face the 50% tariff if they meet one of the following rules:
-
The goods were already loaded on a vessel and in transit before 12:01 am EST on August 27, 2025.
-
They were entered for consumption or withdrawn from a bonded warehouse before 12:01 am EST on September 17, 2025.
-
The importer certifies that the products qualify for this in-transit exception by declaring a revised harmonised tariff schedule.
Goods Impacted And Exempted
The new tariffs primarily cover iron, steel, aluminium, copper products, passenger vehicles, light trucks, and auto components. However, India’s crucial pharmaceutical exports and electronics—including chips, mobile phones, and tablets—are exempted, offering partial relief.
Geopolitical Context
India is expected to be among the worst-hit countries from Trump’s trade offensive. The US President has justified the move by pointing to India’s continued imports of Russian crude oil, claiming they are “fuelling the war machine” in Ukraine. While Indian refiners such as Indian Oil Corporation and Reliance Industries may reduce purchases of Russian crude, they are unlikely to stop altogether, signalling New Delhi’s intent to balance economic ties with Moscow.
