Updated on: Aug 26, 2025 01:53 pm IST
The US has notified additional tariffs on India, but there may be some respite for some goods, for some time. A look at the rules for 50% US tariffs on India.
The United States has notified additional 25% tariff on Indian products, a day before they actually come into effect. But there may be some respite for some goods, for some time.
“To effectuate the President’s Executive Order 14329 of 6 August 2025, which imposed a specified rate of duty on imports of articles that are products of India, Secretary of Homeland Security has determined that appropriate action is needed to modify the Harmonised Tariff Schedule of the United States (HTSUS) as set out in the Annex to this notice,” the notice issued by the Department of Homeland Security stated.
“The duties set out in the annex to this document are effective with respect to products of India that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am, eastern daylight time, on 27 August 2025.”
Indian products will not be subject to 50% US tariffs if:
- They were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entering into the US before 12:01 am EST on 27 August 2025.
- They are entered for consumption, or withdrawn from a warehouse for consumption before 12:01 am EST on 17 September 2025.
- The importer certifies that the products qualify for this in-transit exception by declaring a new harmonised tariff schedule.
The products that are exempt from 50% US tariff include goods made of iron and steel, aluminium and copper, as well as passenger vehicles, light trucks, auto components. India’s pharma sector as well as electronics (chips, mobile phones and tablets) are exempt as well.
India is likely to be among the countries worst hit by Trump’s trade offensive, with tariffs on Indian imports set to surge to 50% on Wednesday. The US president has cited India’s Russian crude oil trade as the rationale, which is “fuelling the war machine” in Ukraine.
Against that backdrop, Indian refiners—led by Indian Oil Corp. Ltd. and Reliance industries Ltd.—are likely to curb their purchases of Russian crude oil but not pause them entirely, indicating that New Delhi has no plans to sever ties with Moscow.
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