If these three conditions are met, Indian products will escape 50% tariff in the US

The United States has notified that an additional 25% tariff will come into effect on Indian products from 12:01 a.m. (EDT), August 27, 2025, effectively raising the total duty to 50%. This decision follows the breakdown of negotiations between New Delhi and Washington.

However, Indian exporters can still avoid this steep tariff hike if three exemption conditions are met.

The three conditions for exemption

Loading Condition – Goods must have been loaded on ships bound for the US before 12:01 a.m. (EDT), August 27, 2025. Any consignment already in transit will not attract the additional tariff.

Entry Condition – Goods must enter the US market for consumption or sale before 12:01 a.m. (EDT), September 17, 2025. Beyond this date, the higher tariff will apply even on in-transit consignments.

Certification Requirement – Exporters must provide certification to US Customs and Border Protection (CBP) declaring that the goods fall under the in-transit exemption. This must be done using the new HTSUS heading 9903.01.85.

Why Trump imposed tariffs

On August 7, 2025, former US President Donald Trump announced the hike from 25% to 50% import duty on India, citing New Delhi’s continued energy trade with Russia. According to Trump, India’s purchase of discounted Russian crude oil indirectly supports Moscow in the Ukraine war.

Trump gave a 21-day deadline for India to change its stance, but New Delhi stood firm. The Indian government defended its trade policy, emphasizing that the interests of Indian farmers and small industries come first and that India would continue to source energy from Russia to safeguard its economy.

What this means for India

The higher tariffs will affect several Indian exports to the US unless they qualify under the exemption conditions. While the move is part of Trump’s broader strategy to pressure Russia, it also creates fresh challenges for Indian exporters already dealing with global trade uncertainties.