Starting August 27, although most Indian products entering the US will face an additional import duty under the new trade order, there are certain exceptions that exist as per the notice by the US Department of Homeland Security.
New Delhi
India’s export sector is bracing for a major disruption as the United States moves ahead with steep tariffs that will take effect from 9:30 am IST on Wednesday. The Trump administration confirmed that the duty on most Indian goods will rise to 50%, citing national security and India’s continued purchase of Russian crude oil as the main trigger.
According to a report by the Global Trade Research Initiative (GTRI), India could see a collapse of up to 70% in exports from labour-intensive industries such as textiles, jewellery, shrimps, and handicrafts. Sectors like pharmaceuticals and electronics are expected to be relatively insulated. The immediate economic impact is already visible—stock markets shed over ₹5.4 lakh crore in investor wealth, while the rupee extended its decline for the fifth straight session.
However, not all Indian shipments will be hit. The US Department of Homeland Security has outlined three conditions for exemption:
- Goods already shipped to the US before 12:01 am EDT on August 27.
- Goods cleared for use, or taken out of warehouses before 12:01 am EDT on September 17, 2025.
- Importers must certify exemptions with the special code HTSUS 9903.01.85.
Despite this limited relief, industries in hubs like Tiruppur, Noida, and Surat have begun halting production, warning of mass layoffs and supply chain shocks. With nearly $48 billion worth of exports at risk, India faces its toughest trade challenge yet under the Trump presidency.
