President Trump issued an executive order on August 6, 2025 imposing an additional 25% tariff on India because it imports Russian oil and oil products. This tariff was enacted citing the International Economic Emergency Powers Act authority.
As of August 27, 2025, goods from India will be subject to the MFN duty, any applicable antidumping or countervailing duty, section 201 duty, the 25% IEEPA reciprocal duty, and this 25% IEEPA Russian oil tariff.
However, the tariff will not be imposed on (1) goods subject to existing or future Section 232 tariffs, (2) articles excepted under 50 USC 1702(b) (donations, informational materials, etc.), (3) articles exempt from the reciprocal tariffs, and (4) goods for which entry is properly claimed under HTSUS Chapter 98, with the exception of HTSUS 9802.00.80 (duty will apply to the value added abroad and not to U.S. value) and HTSUS 9802.00.40, 9802.00.50 and 9802.00.60 (duty will apply to the value of repairs, alterations, or processing performed in India).
Please note that this is not an increase to India's reciprocal tariff rate, but instead the impositon of a separate tariff under IEEPA.
Exceptions
-
Goods in transit: goods loaded on to a vessel at the port of loading and in transit on the final mode of transit prior to 12:01 a.m. eastern August 27, AND entered for consumption, or withdrawn from warehouse for consumption before 12:01 a.m. eastern on September 17, 2025.
-
Goods subject to section 232 actions: which would currently include steel, aluminum, autos & parts, and copper, or any 232 actions established in the future.
-
Goods in Annex II of Executive Order 14257: Goods in Annex II of Executive Order 14257 "Regulating Imports With a Reciprocal Tariff to Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits."
-
Goods provided for in 50 U.S.C. 1702(b): goods that are for personal use, donations of food, clothing and medicine intended to relieve human suffering; merely informational materials
Other Information
- FTZ: Products admitted to an FTZ after 12:01 am Eastern on August 27, 2025 must be admitted as priveleged foreign status. Goods eligible for admission to an FTZ under domestic status are exempt from the tariffs.
- Monitoring: The Administration will monitor countries importing Russian oil and may expand the scope of coverage to other countries in the future.
Official Documents