U.S. Imposes an Additional 25% Tariff on Indian Imports Over Russian Oil Ties
This measure doubles the overall tariff on many Indian goods to 50%, with exemptions for in-transit shipments, humanitarian items, Section 232 goods, reciprocal tariff products, and certain entries under Chapter 98.
The United States has imposed an additional 25% tariff on Indian imports, effective August 27, 2025, under Executive Order 14329.
This tariff is tied to India’s purchase of Russian oil, either directly or indirectly.
The U.S. administration cited national security and foreign policy threats, stating that India’s trade practices were supporting Russia’s economy and undermining U.S. efforts to counter Russia’s harmful activities.
The new tariff applies to goods imported from India that are entered for consumption, or withdrawn from warehouse for consumption, on or after August 27, 2025, at 12:01 Eastern Daylight Time (EDT).
It is in addition to the 25% reciprocal tariff already in force, which will bring the total tariff on Indian imports to 50%.
Additionally, any other antidumping or countervailing (AD/CV) duties, taxes, fees, exactions, and charges will continue to apply— unless the goods are subject to existing or future actions under Section 232.
The industries affected are expected to include:
The ad valorem 25% duty does not apply to the following:
Indian products already loaded onto a vessel and in transit before 12:01 a.m. EDT on August 27, 2025, are exempt from the additional 25% duty, only if they are entered for consumption, or withdrawn from warehouse for consumption, before September 17, 2025.
Importers must certify eligibility and declare these entries under HTSUS 9903.01.85.
The additional tariff does not apply to goods already covered by Section 232 of the Trade Expansion Act of 1962.
Articles of iron, steel, aluminum, and their derivative products, passenger vehicles, copper, and certain other items remain under their existing duty rates under Section 232.
Products falling under 50 U.S.C. 1702(b) are also exempt. These include humanitarian donations (such as food, clothing, and medicine) and informational materials (such as publications, films, recordings, and artwork).
Importers must declare such goods under HTSUS 9903.01.88 or HTSUS 9903.01.89.
Indian-origin products listed in Annex II to Executive Order 14257 are also excluded from the new duty.
These goods must be declared under HTSUS 9903.01.86.
Most goods entered under Chapter 98 of the U.S. tariff schedule are exempt from the new 25% tariff on Indian imports, provided CBP agrees the entry qualifies under Chapter 98 rules.
However, there are exceptions.
Goods that are repaired, altered, or processed in India will still face the tariff, but only on the value of the work done abroad.
Similarly, products assembled in India with U.S. components will be charged the tariff on the foreign assembly portion, while the U.S.-origin parts remain exempt.
Items subject to the tariff on Indian imports will not be granted privileged foreign status and will face the 25% duty, in addition to any other applicable tariffs or fees.
If you import goods from India, we recommend you take the following steps:
At Cole International, we constantly monitor changing trade regulations and offer customs and compliance consulting services to help businesses navigate these changes.
Additionally, we provide timely and efficient customs brokerage services to help U.S. importers streamline their customs clearance and other import processes.
If you import goods from India, please reach out to one of our trade professionals to discuss how we can help ensure your business continuity and compliance.