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Trump Tariffs: The US has imposed an additional 25 percent fee on Indian goods, due to which the total tariff rate has reached 50 percent. However, some Indian goods have been given temporary relief. These goods will not be targeted only when they fulfill certain conditions. For example, if the goods were in a transit before entering the US before (EST) on 27 August 2025 at 12:01 pm (EST), it would not be tariff.
Similarly, if the goods were recorded for consumption before (EST) on 17 September 2025 at 12:01 pm or removed from the warehouse, it would come under the scope of discount. Also, the importer has to prove that the goods are eligible for this exemption and for this the new normal generalized tariff schedule will have to be declared.
Some goods exempted from tariff
Apart from this, some special products are also kept separate from 50 percent tariffs. These include iron and steel, aluminum, copper, passenger vehicles, light trucks and automobile parts.
Rating agency Crisil says that uncertainty over American tariffs can become a major obstacle in the decisions of capital expenditure in FY 2025-26. According to the report, this tariff can affect the notion of Indian corporate investment, even if the financial condition of companies is strong.
Crisil believes that the Free Trade Agreement (FTA) can increase the trust of investors, as they create a stable and predetermined commercial environment by reducing fees obstructions. The report also said that the American fees levied on India are much higher than the fees levied on countries like Bangladesh, Vietnam and Indonesia. Challenges such as increasing geopolitical stress, disruption in global supply chain and high costs at the domestic level are preventing the enthusiasm of private investors.
