Which Indian Goods Are Exempt from the New 50% US Tariff

Several product categories, ranging from metals to vehicles, are exempt from the duty hike.

India is bracing for the 50% tariffs that will take effect from 9:30 a.m. on Wednesday, August 27, after the Trump administration moved ahead with its plan to sharply raise duties on Indian goods. The U.S. Customs and Border Protection (CBP), under the Department of Homeland Security, has issued a notice confirming the implementation of these tariffs from midnight on August 27, 2025. The increase comes after two separate executive orders were signed by President Trump: one on July 31, which imposed a 25% tariff on Indian products starting August 7, and another on August 6, which added an additional 25% tariff. Together, these actions raise the overall rate of duty on Indian exports to the United States to 50%. The August 6 order explicitly cited India’s “direct or indirect importation of Russian oil” as the justification for the additional tariffs, linking the move to U.S. sanctions targeting Moscow over its war in Ukraine.

The CBP notice implementing these tariffs refers to Executive Order 14329, which invoked the International Emergency Economic Powers Act and the National Emergencies Act to expand earlier restrictions outlined in Executive Order 14066 of March 2022. That earlier order prohibited the import of Russian-origin products such as crude oil, petroleum fuels, and their derivatives. The U.S. government argued that Indian imports of Russian oil—whether directly or indirectly—undermined those measures. According to the notice, products of India entered for consumption on or after 12:01 a.m. EDT on August 27, 2025, will be subject to the additional 25% duty, raising the total to 50%, unless specifically exempted. In-transit exceptions are provided for goods shipped prior to the effective date, with deadlines for entry before September 17, 2025. Certain categories of goods under 50 U.S.C. 1702(b) and specific exemptions listed in earlier executive orders will also not be subject to the additional tariffs.

The announcement has further strained ties between Washington and New Delhi. Indian officials have condemned the U.S. actions as “unfair, unjust, and unreasonable,” warning that India will “take all necessary action” to safeguard its national interests. On August 25, Prime Minister Narendra Modi delivered a defiant speech, declaring that his government would not allow India’s small entrepreneurs, farmers, or livestock practitioners to suffer as a result of foreign pressure. “My government will never let small entrepreneurs, farmers, and livestock practitioners suffer any harm. No matter how much pressure we face, we will continue to strengthen our strength to resist it,” Modi said at a rally, underlining his administration’s commitment to protecting domestic producers.

Foreign Minister Subrahmanyam Jaishankar also responded sharply to the U.S. measures in remarks made on August 23. “If you have a problem buying Indian oil or refined petroleum products, then don’t buy them. No one is forcing you to buy them, but Europe and the U.S. do. If you don’t like it, don’t buy from India,” he said. He added that it was ironic for a U.S. administration that champions business interests to criticize India for pursuing its own economic choices.

The relations between the two countries have deteriorated since the tariff hike, with the issue adding a new layer of tension to an already fragile diplomatic landscape. While Washington maintains that the new duties are necessary to counter threats from Russia and enforce its sanctions regime, New Delhi sees the move as discriminatory and politically motivated.

As the 50% tariffs officially take effect, India has made clear that it will prioritize resilience, self-reliance, and protection of its domestic economy, even as it faces one of the most serious trade confrontations with the United States in recent years.

The 50% tariff on Indian goods does not apply to several categories of products. Personal-use goods carried in accompanied baggage are exempt. Goods entered under Chapter 98 of the tariff schedule are also excluded, although there are exceptions for certain provisions where duties still apply to the value of repairs, alterations, or processing, or to the value of articles assembled abroad. In addition, products classified under heading 9903.01.86 and certain items specified in the tariff notes are not subject to the additional duty.

Iron and steel products, along with derivative iron and steel items, are exempt. The same applies to aluminum products and derivative aluminum products. Passenger vehicles such as sedans, SUVs, crossover utility vehicles, minivans, cargo vans, and light trucks, as well as their parts, are also excluded from the additional duty. Furthermore, semi-finished copper and derivative copper products are not subject to the tariff.

Finally, donations of essential goods such as food, clothing, and medicine intended to relieve human suffering are exempt, though these donations may still be restricted if the President determines that they interfere with national security, are the result of coercion, or would put U.S. Armed Forces at risk.

August 27, 2025

Notice of Implementation of Additional Duties on Products of India Pursuant to the
President’s Executive Order 14329, Addressing Threats to the United States by the
Government of the Russian Federation