On August 6, President Donald Trump issued an Executive Order on “Addressing Threats to the United States by the Government of the Russian Federation,” imposing additional tariffs on Indian imports. Under these new tariffs imports of most Indian goods will be subject to an additional 25% duty, which will stack on top of the 25% duty on Indian imports taking effect on August 7, to result in a 50% effective duty.
The Executive Order states that the tariffs are necessary because India is directly or indirectly importing Russian oil, exacerbating the national emergency declared Executive Order 14066 of 2022, which bars the importation of Russian oil into the US. This tariff is the first imposed by the U.S. on this basis. The new directive expands the scope of economic pressure by targeting third-nations that facilitate Russia’s oil trade.
The tariff will take effect 21 days from the date of the Executive Order (i.e., August 27), with limited exceptions for goods already in transit. It applies broadly to Indian imports unless exempted under specific trade provisions or existing reciprocal tariff agreements. Notably, this duty stacks atop other applicable tariffs except for tariffs imposed under Section 232, such as recent tariffs on copper, steel, aluminum, and autos.
The Executive Order also outlines a robust framework for monitoring and enforcement. The Secretary of Commerce, in coordination with other senior officials, is tasked with identifying additional countries engaged in similar trade practices with Russia. Recommendations for further action—including the imposition of similar tariffs—may be made to the President based on these findings. The Executive Order also allows for future modifications based on evolving circumstances or retaliatory actions
The U.S. represents the largest market for Indian exports, receiving Indian goods worth over $80 billion in 2022—goods which will soon be subject to a steep tariff.
The global tariff landscape continues to be extremely fluid, presenting new challenges to businesses on a daily basis. The latest tariffs on Indian products show how trade policy is intertwined with broader geopolitical factors. We will continue to monitor and report on developments in this space.