🛢️ New 25% Tariff on Indian Imports Linked to Russian Oil Trade (Effective August 27, 2025)

The United States has announced a new 25% tariff on most Indian imports, effective August 27, 2025, citing national security concerns over India’s continued trade in Russian oil. This new tariff stacks on top of the existing 25% reciprocal tariff already in place under the April 2025 order, bringing the total duty to 50%, unless exempted.

This action was formalized under the Executive Order issued August 6, 2025, titled “Addressing Threats to the United States by the Government of the Russian Federation.”

👉 Read the full Executive Order here

📅 When Does the New Tariff Take Effect?

The 25% duty applies to goods that are:

• Entered for consumption or

• Withdrawn from warehouse for consumption
  on or after 12:01 a.m. EDT on August 27, 2025.

🚢 Exception for Goods Already in Transit:

Goods are exempt from the new tariff if they meet both of the following:

1. Were loaded onto a vessel and in final transit to the United States before 12:01 a.m. EDT on August 27, 2025, and

2. Are entered into the U.S. (or withdrawn from warehouse) before 12:01 a.m. EDT on September 17, 2025.

If both conditions are met, those shipments will not be subject to the additional 25%.

⚖️ Will This Stack With Other Tariffs?

Yes. This 25% Russian oil-related tariff stacks on top of the existing 25% reciprocal tariff already applied to Indian goods under Executive Order 14257 (April 2, 2025).

Unless an exemption applies, Indian imports will now face a total 50% ad valorem duty.

🚫 Exemptions from the New 25% Tariff:

• Goods subject to Section 232 tariffs (e.g., steel and aluminum)

• Goods covered under 50 U.S.C. §1702(b) (national security exceptions)

• Goods listed in Annex II of Executive Order 14257 (reciprocal tariff exclusions)

🏗️ Foreign Trade Zones (FTZs) and Compliance Notes

Importers using Foreign Trade Zones need to pay close attention.

Starting August 27, 2025:

• Goods admitted into a FTZ must be placed in “Privileged Foreign Status” under 19 CFR 146.41

• This means the applicable duties, including the new 25%, are locked in based on the HTSUS classification at the time of admission

🔍 Why India Was Targeted

The U.S. government determined that India continues to import Russian Federation oil, either directly or by routing it through third-party countries. This activity is seen as undermining sanctions and policies meant to cut off funding for Russia’s ongoing aggression in Ukraine.

India is the first country to face this additional duty, but others could follow.

🧭 Will Other Countries Face the Same?

Yes, possibly.

The Secretary of Commerce is tasked with monitoring global oil trade and identifying other countries importing Russian oil, either openly or indirectly. If found, they could face the same 25% duty, stacking on top of any existing tariffs.

Future modifications to this order may also occur if:

• A country retaliates,

• There’s progress in trade or security alignment, or

• The national emergency declared in Executive Order 14066 continues to evolve.

📞 Need Help Understanding How This Affects You?

If you import from India or work with partners who do, it’s critical to review your classifications, timelines, and supply chain risk now.

➡️ Call us at 833-782-7628 Ext. 1 for a free consultation. We’ll walk you through your exposure and help you stay compliant.