The United States has announced a 25% additional tariff on Indian goods, set to take effect from August 27, 2025. However, certain exemptions apply. Indian products will be spared the 50% tariff hike if they were shipped and in transit to the US before 12:01 am EST on August 27, 2025, and are cleared for consumption or withdrawn from bonded warehouses before 12:01 am EST on September 17, 2025. Importers must also certify eligibility by declaring a new harmonised tariff schedule.
The notice from the US Department of Homeland Security, implementing Executive Order 14329 (issued on August 6, 2025), stated that the new tariffs apply to Indian goods entering the US after the effective date.
Some products, however, are exempt from the steep 50% tariff. These include items made from iron, steel, aluminium, and copper, as well as passenger cars, light trucks, and auto parts. Pharmaceuticals, semiconductors, mobile phones, and tablets are also excluded.
The hike is part of President Trump’s trade strategy, citing India’s continued imports of Russian oil as indirectly supporting the war in Ukraine. Indian refiners may reduce, but not halt, Russian crude purchases.
