Some Indian products may avoid hefty tariffs of up to 50% in the US, but this will require meeting certain conditions. The US has issued a draft notice regarding tariffs on India. According to this draft notice, a substantial 50% tariff is proposed to be imposed on India from 27 August (Wednesday). The notice details the entire process of imposing the new tariff on India. However, the same draft also offers a way to avoid these heavy tariffs for some products.
The Department of Homeland Security's notice stated, “This increased tariff will apply to Indian products that enter for consumption, or are withdrawn from warehouse for consumption, on or after 12:01 AM (EDT) on August 27, 2025.”
However, Indian products can avoid the 50% tariff if they meet these three conditions:
(1) If Indian products were already loaded onto a vessel before 12:01 AM (EDT) on August 27, 2025, and were en route to the US, then no additional tariff will be levied on those goods.
(2) Products that are cleared for consumption in the US or withdrawn from warehouse for consumption before 12:01 AM (EDT) on September 17, 2025, will not be subject to the additional tariff.
(3) If the importer declares the special code HTSUS 9903.01.85 with US Customs, confirming this, then no additional tariff will be levied.
The Department of Homeland Security's notice stated, “No such additional duty will be imposed on products of India if they are (1) loaded on a vessel at the loading port before 12:01 AM (EDT) on August 27, 2025, and are in the final transit mode prior to entry into the United States; (2) entered for consumption or withdrawn from warehouse for consumption before 12:01 AM (EDT) on September 17, 2025; and (3) the importer certifies to CBP (US Customs and Border Protection) by declaring the new HTSUS heading 9903.01.85 that the products qualify for this ‘in-transit’ exemption, as described in Annex to this notice.”
On August 7, Donald Trump increased tariffs on Indian goods from 25% to 50% due to India's trade relations with Russia. He hoped this would bring President Vladimir Putin to the negotiating table regarding his war in Ukraine. Donald Trump also gave 21 days to negotiate a deal.
The US President accused India of boosting Russia's war in Ukraine by purchasing Russian crude oil at discounted prices. India has defended its purchases from Russia, indicating that New Delhi will continue its trade. Earlier, Prime Minister Narendra Modi sent a strong message regarding the tariffs imposed by the US on Indian products, reiterating that the interests of farmers and small industries will remain paramount for the central government.
