August 8, 2025

US to Impose 25% Tariff on Certain Indian Products

Amit Kapoor07 mins
US to Impose 25% Tariff on Certain Indian Products

Key Takeaways

  • New 25 Percent Tariff on Indian Imports: Starting August 27, 2025, the U.S. will impose a 25 percent tariff on certain products from India, in addition to existing duties.
  • Justification Cites National Security: President Trump stated that this duty will address India’s direct or indirect importation of Russian Federation oil and the national emergency relating to the Russian Federation described in Executive Order 14066.
  • Exemptions: Specific goods are exempt, and shipments in transit may qualify for relief.
  • Potential Extension to Other Countries: Imports from other foreign countries directly or indirectly importing Russian Federation oil could be subject to the same additional rate of duty in the future.

On August 6, President Trump signed an Executive Order imposing an additional the value duty of 25 percent on imports from India, effective August 27, 2025, to address India’s direct or indirect importation of Russian Federation oil. This new duty will be imposed in addition to any other duties and fees applicable to imports from India with certain exceptions.

Applicability: President Trump stated that this new duty would address the national emergency relating to the Russian Federation described in Executive Order 14066which was previously issued to prohibit the importation of certain products of Russian Federation origin, among other articles, into the United States. The new additional the value duty of 25 percent will be imposed in addition to any other duties and fees, including the reciprocal duties recently announced in Executive Order 14326 of July 31 (For further details on the reciprocal duties, please see here).

Exemptions: There are certain exceptions to the applicability of this duty. This duty will not apply to:

  • Products subject to existing or future duties imposed under Section 232 of the Trade Expansion Act of 1962 — currently impacting articles of steel, aluminum and copper, and potentially excluding critical minerals, pharmaceuticals, lumber, semiconductors and other such products in the future.
  • Products listed in Annex II to Executive Order 14257 of April 2, 2025, as amended. These products are not subject to either the recently increased reciprocal duty of 25 percent on imports from India, or this new duty.
  • Products excepted by 50 U.S.C. § 1702(b), iecommunication, which do not involve a transfer of anything of value; informational materials, including publications, films, posters, photographs, etc.; and importation of accompanied baggage for personal use.
  • Goods that are both (1) loaded onto a vessel and in transit on the final mode of transit prior to entry into the U.S. before August 27, 2025, and (2) entered for consumption or withdrawn from warehouse for consumption before September 17, 2025.

Modifications: The Executive Order provides that this new duty action could be subject to modifications. If a foreign country impacted by this Order (ieIndia and Russia) retaliates against this duty action or takes other significant actions to address the U.S. national emergency, the Order may be modified.

Pharmaceuticals: With this new action, certain pharmaceutical ingredients on products of India previously subject to 10 percent duties will now be subject to a five-times higher tariff rate. Active pharmaceutical ingredients listed in Annex II of Executive Order 14257 continue to be excepted for now, pending the outcome of the Section 232 investigation, which could result in duties as high as 200 percent.

Other Countries: Under this Executive Order, imports from other foreign countries could be subject to the same rate of duty in the future. In the order, President Trump directed the Secretary of Commerce, in coordination with other related federal agencies, to determine whether any other country is “directly or indirectly importing Russian Federation oil.” If the Secretary of Commerce finds that a certain country is engaging in such activity, relevant officials such as the Secretaries of Commerce, the Treasury, and Homeland Security, are directed to recommend whether that country should be subject to the same additional the value duty of 25 percent.

The Executive Order defines the term “Russian Federation oil” as “crude oil or petroleum products extracted, refined, or exported from the Russian Federation, regardless of the nationality of the entity involved in the production or sale of such crude oil or petroleum products.” Also, the term “indirectly importing” is defined as “purchasing Russian Federation oil through intermediaries or third countries where the origin of the oil can reasonably be traced to Russia.” Any other foreign countries involved in importing Russian Federation oil defined in the Order will be at the risk of being subject to the same duty.