The US has announced big new tariffs on Indian goods starting August 27, 2025. The duties will go as high as 50%, but some Indian products can avoid the extra cost if they follow certain rules.
The move is part of Washington’s pressure on India over its trade with Russia, especially oil imports, which the US says are funding the war in Ukraine. This decision has created fresh concerns about India’s trade future and its impact on businesses.
What the Tariff Order Says?
Just a day before the tariffs take effect, the US confirmed an additional 25% duty on Indian products. For many goods, this can climb to 50%. However, three conditions allow Indian exports to escape the higher tax:
- Goods shipped before 12:01 am EST on August 27, 2025, and already on the way to the US.
- Goods entering the US for consumption or removed from a bonded warehouse before 12:01 am EST on September 17, 2025.
- Goods that importers confirm qualify under the updated harmonised tariff schedule.
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The US Department of Homeland Security said:
“To carry out the President’s Executive Order 14329 of August 6, 2025, which set new duties on imports from India, the Secretary of Homeland Security has decided that changes to the Harmonised Tariff Schedule of the United States (HTSUS) are required, as shown in the Annexe to this notice.”
Which Indian Goods Are Safe?
Some Indian exports are safe from the maximum 50% tariff. These include:
- Iron, steel, aluminium, and copper goods
- Passenger cars, light trucks, and auto parts
- Pharmaceuticals and medicines
- Electronics such as semiconductors, mobile phones, and tablets
This is a relief for India’s auto and pharma sectors, which are major suppliers to the US.
Why India Is Targeted?
India is one of the countries most affected by President Trump’s trade policy. Washington argues that India’s Russian crude oil purchases are “funding the war machine” in Ukraine. But India has defended its decision, saying Russian oil is necessary to keep domestic fuel prices affordable.
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Even though Indian refiners like Indian Oil Corporation and Reliance Industries may cut back on buying Russian crude, they are unlikely to stop completely. This makes it clear that India plans to maintain its energy ties with Moscow.
What This Means for India’s Trade Future?
Indian exporters are in a challenging situation as a result of the US tariffs. Even while some products are protected, supply chains and corporate planning may be affected by the uncertainty. In order to lessen its reliance on the US market, many analysts predict that India will now attempt to diversify its trading partnerships, turning more toward Asia and Europe.
However, the exemptions demonstrate that US does not wish to harm American industries that depend on reasonably priced Indian imports, particularly those in electronics and pharmaceuticals.
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