India Hit With 25% U.S. Import Tariff
- Arne Mielken
- Aug 8
- 3 min read
New U.S. tariffs target India for buying Russian oil. Learn what it means for trade compliance.
The U.S. just dropped a 25% tariff bomb on Indian imports. The reason? India's ongoing purchases of Russian oil, which Washington says undermines sanctions and fuels the war in Ukraine.
Arne’s Takeaways
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Key Questions Covered in This Blog
Why is the US imposing tariffs on Indian goods?
Which imports from India are affected?
When do the new tariffs take effect?
Are any products or countries exempt?
How do the tariffs interact with other trade duties?
What does this mean for customs and trade compliance?
Abbreviations Used In This Blog
IEEPA: International Emergency Economic Powers Act
EO: Executive Order
USTR: United States Trade Representative
CBP: U.S. Customs and Border Protection
"Trade policy is now national security policy. If you're not monitoring executive orders, you're flying blind."— Arne Mielken, Managing Director, Customs Manager
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Why is the US imposing tariffs on Indian goods?
The White House says India is importing Russian oil, directly or indirectly, undermining US sanctions. Under Executive Order 14066, continued trade in Russian energy is seen as a threat to US national security. The 25% tariff is a direct response, imposed under IEEPA powers to increase pressure on sanction evasion.
Download the EO now:
Practical Recommendation: Customs teams must immediately audit India-sourced imports for exposure and develop a mitigation plan. |
Which imports from India are affected?
All goods of Indian origin entering the US are subject to a new 25% ad valorem tariff unless specifically excluded. The EO includes exceptions: products excluded under 50 USC 1702(b), listed in Annex II of EO 14257, or already subject to Section 232 tariffs.
When do the new tariffs take effect?
Goods entered or withdrawn for consumption in the US after 12:01 a.m. EDT, 21 days after the EO (dated August 6, 2025) will be hit. Exceptions exist for goods already loaded and in transit, as long as they're entered by September 17, 2025.
Practical Recommendation: Importers should expedite transit of in-scope goods to meet the September 17 cutoff. |
Are any products or countries exempt?
Yes. Exclusions apply to:
Goods listed in Annex II of EO 14257
Products covered under 50 USC 1702(b)
Section 232 tariffed items (e.g. steel, aluminum)
Also, FTZ entries must be under privileged foreign status unless meeting “domestic” status requirements.
How do the tariffs interact with other trade duties?
They stack. Unless otherwise excluded, the 25% duty applies on top of any other duties, taxes, fees, or exactions. This includes Section 301 and EO 14257 tariffs. Only if Section 232 tariffs already apply will these new duties be waived.
Practical Recommendation: Review all India-origin SKUs for cumulative tariff exposure and determine landed cost impact. |
What does this mean for customs and trade compliance?
This change demands immediate action. Compliance teams must reclassify impacted items, reassess sourcing, and flag indirect sourcing risks. Documentation must prove origin to avoid penalties.
US CBP and the Commerce Department will monitor and enforce these tariffs. Violations could trigger penalties under IEEPA or EO enforcement authority.
Wrap-up: What to Do Now
Tariffs on India are here, and they’re real. If you're importing anything from India into the US, your landed cost just spiked. Review your supply chain, get legal and customs support, and move fast.
Check our dedicated Intelligence Hub for updates or book a 1:1 call.
Sources & Further Information
Disclaimer
Please note that the information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While our aim is that the content is accurate and up to date, it should not be relied upon as a substitute for tailored advice from qualified professionals. We strongly recommend that you seek independent legal and tax advice specific to your circumstances before acting on any information contained in this article. We accept no responsibility or liability for any loss or damage that may result from your reliance on the information provided in this article. Use of the information contained in this article is entirely at your own risk.
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