Trump’s 50% Tariffs on Indian Goods Come Into Effect

Tariff
3 Min Read

US President Donald Trump’s decision to impose additional tariffs on Indian goods has officially come into force. Starting Wednesday, 9:31 am IST, Indian exports to the United States will now face a steep 50% duty, double the original base tariff.

This development comes after Trump initially announced a 25% base tariff earlier this month, followed by an additional 25% duty aimed specifically at India. The move is part of Washington’s wider tariff campaign, targeting nearly 70 countries, particularly those maintaining strong economic ties with Russia.

Impact on Indian Oil Imports

India, being a major importer of crude oil from Moscow, has been placed under stricter tariff measures. The White House emphasized that these steps were “reciprocal” and designed to put pressure on nations continuing significant trade with Russia.

Also Read: US Tech Giants Double Down on India

DHS Confirmation and Timeline

The US Department of Homeland Security (DHS) confirmed that the increased tariff rate applies to all Indian goods entered for consumption or withdrawn from warehouses on or after 12:01 am EDT, August 27, 2025.

However, there is a temporary exemption. Indian shipments already en route to the US before August 27 will not face the 50% tariff, provided they are cleared for consumption by September 17, 2025. Importers must use the special code HTSUS 9903.01.85 to claim this exemption while filing with US Customs.

Market Insights and Updates

This tariff hike is expected to impact trade flows and raise costs for Indian exporters, especially in energy-linked sectors. While some shipments may qualify for exemptions, the broader impact could lead to increased volatility in India-US trade relations and potential cost escalations for American buyers of Indian goods.

Key Insights:

  • US tariffs on Indian goods doubled to 50% effective August 27, 2025.

  • Exemptions apply to goods already shipped before the deadline.

  • India’s crude oil imports from Russia remain a central focus of Washington’s tariff campaign.

  • Importers must certify exemptions using HTSUS 9903.01.85 code.

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I am Jitesh Kanwariya is a professional stock market analyst and F&O trader with expertise in derivatives and market research. A Python developer by profession, he leverages data-driven insights to analyse market trends and simplify trading for investors.
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