Indian exporters get a three-week breather from the additional 25-percent duty imposed by the United States on August 6, increasing total tariffs on India to 50-percent, as per the fact sheet released by the White House.
This applies to Indian goods that were in transit before August 27 and enter American shores before or on September 17, according to the order.
The additional penalty of 25-percent kicks in from August 27, 2025.
The grace-period only applies to the additional duty announced on August 6 and not the earlier 25-percent duty, which is applicable from August 7.
This means Indian exports already in transit can still ship goods from India without the 25-percent extra duty if they arrive and clear by September 17.
US President Donald Trump signed an executive order on August 6 accusing India of colluding with Russia, increasing the effective tariff rate on the country to 50 percent, up from 25 percent as per the previous order issued on July 31.
India now faces one of the highest tariff burdens in the world, on par with BRICS partner Brazil, which has also been targeted under similar terms.
Among the worst affected sectors are India’s labour-intensive exports, including leather, footwear, textile and gems and jewellery.
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