The United States has officially announced an additional 25 per cent tariff on Indian goods. This new tariff will take effect from 12:00 PM (US time) on August 27. After this tariffs on Indian products going to the US will rise to 50 per cent. However there are three specific conditions under which some Indian products could be exempted and will not face the extra 25 per cent duty. The decision was made early this morning by the US administration after trade talks between the two countries failed. Since no agreement could be reached the Trump administration decided not to extend the deadline and went ahead with implementing the higher tariffs. Conditions for Tariff Exemption Some Indian products can avoid the extra 25 per cent duty if they meet any of these three conditions: If the goods were loaded onto a ship and departed for the U.S. before 12:01 AM (EDT) on August 27 2025 they will not be charged the extra tariff. If those goods reach the U.S. market or are ready for consumption before 12:01 AM (EDT) on September 17 2025 they will also be exempt.  Indian exporters must prove to US Customs (CBP) that their goods qualify for the in-transit exemption. To do this they need to declare their shipment under the new code HTSUS heading 9903.01.85. Trump’s Tariff on India On August 7 Donald Trump increased tariffs on Indian imports from 25 per cent to 50 per cent citing India’s ongoing trade with Russia. Trump believes that by putting pressure on India Russian President Vladimir Putin could be forced to negotiate over the Ukraine war. He had even given a 21-day deadline before enforcing the hike. Trump accused India of buying cheap crude oil from Russia which according to him was indirectly supporting the Ukraine conflict. India however defended its trade ties with Russia saying it would continue its business to safeguard national interests. Earlier Prime Minister Narendra Modi had made it clear to the U.S. that protecting Indian farmers and small industries would remain the government’s top priority. Goods exempt from the 50% US tariff Some Indian products will not be affected by the higher tariff. These include: Goods made of iron steel aluminium and copper Passenger vehicles light trucks and auto components Products from India’s pharmaceutical sector Electronics such as chips mobile phones and tablets Despite these exemptions India is expected to be one of the worst-hit countries by Trump’s trade action with tariffs on many other Indian imports rising to 50% from Wednesday. The US president has justified the hike by pointing to India’s trade in Russian crude oil claiming it is “fueling the war machine” in Ukraine. HIGHLIGHTS The 50% tariff on Indian imports to the US officially came into effect on Wednesday. This new rate doubles the earlier 25% duty which had been in place since August 7 adding more strain to India-US trade relations. Exempted products include items made of iron steel aluminium and copper along with passenger vehicles light trucks and auto components. Products from India’s pharmaceutical sector and electronics — such as chips mobile phones and tablets — are also exempt from the 50% duty.