The Trump administration has outlined its plan to impose a steep 50 percent tariff on a wide range of Indian goods, according to a draft notice released Monday by the Department of Homeland Security. The move comes as the United States continues to recalibrate its trade policies amid the ongoing Russia–Ukraine conflict.
The tariff hike, set to take effect at 12:01 a.m. EDT on August 27, will apply to most Indian products entering the U.S. market. Goods covered by section 3 of Executive Order 14329 will remain exempt.
However, the notice provides a limited window of relief for shipments already en route to the United States. Indian products will not face the additional duty if three conditions are met:
- The goods must have been loaded on a vessel and in transit to the U.S. before the August 27 deadline.
- They must clear customs for domestic use or be withdrawn from a warehouse no later than 12:01 a.m. EDT on September 17, 2025.
- Importers must certify eligibility for this exemption by declaring the new code HTSUS 9903.01.85 to U.S. Customs and Border Protection (CBP).
The draft notice makes clear that shipments failing to meet these criteria will be subject to the full 50 percent tariff.
Trade experts say the decision could significantly affect exporters in India who rely on the U.S. market, while also increasing costs for American businesses importing Indian goods. New Delhi has yet to issue an official response.
The development marks another flashpoint in U.S.–India trade relations, with industry observers watching closely for potential retaliatory measures from the Indian government.
