How 50% US tariff on Indian products can be avoided
What's the story
The Trump administration has announced 50% tariff on certain Indian products, effective from tomorrow. The decision comes as part of a broader strategy amid the ongoing Russia-Ukraine conflict. However, there are three specific conditions under which these tariffs could be avoided by exporters in India. The US Department of Homeland Security said the increased levies would hit Indian products "that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01am eastern daylight time on August 27."
Criteria
Conditions for tariff exemption
The first condition for tariff exemption is that Indian products should have been loaded on a ship and be in transit to the US before 12:01am EDT (9:31am IST) tomorrow. The second condition states these products should be cleared for use or taken out of a warehouse for consumption before the same time as above on September 17. Finally, the importer must certify this to US Customs by declaring special code HTSUS 9903.01.85.
Diplomatic tensions
Why were tariffs doubled?
The new tariffs were imposed by US President Donald Trump on August 7, doubling them from the previous 25% to 50%. The move was largely seen as an attempt to pressure India over its business ties with Russia amid the latter's invasion of Ukraine. However, India has defended its purchases from Russia and signaled that it would continue its business operations despite these tariffs.