On August 6, 2025, the White House signed an Executive Order under IEEPA and the National Emergencies Act to address the ongoing national emergency related to the Russian Federation’s actions in Ukraine. The order imposes an additional 25% ad valorem duty on articles of Indian origin that are directly or indirectly imported from the Russian Federation, including crude oil, petroleum, and petroleum fuels, oils, and products of their distillation.
This duty supplements existing Section 232 and reciprocal‐tariff measures and applies to entries on or after 12:01 a.m. EDT August 27, 2025.
REVIEW THE EXECUTIVE ORDER: ADDRESSING THREATS TO THE UNITED STATES BY THE GOVERNMENT OF THE RUSSIAN FEDERATION
WHAT INDIA-ORIGIN GOODS ARE SUBJECT TO THE 25% ADDITIONAL TARIFF?
All articles of India imported into the U.S. are subject to the additional 25% ad valorem rate, unless they qualify for exceptions. The scope encompasses any goods whose supply chain can be traced back to Russian Federation oil, including products where India is a direct or indirect importer of that oil or related products.
WHEN DO THE NEW TARIFFS ON INDIA TAKE EFFECT?
The additional duty becomes effective at 12:01 a.m. EDT on August 27, 2025. Goods loaded at the port of loading and in transit on the final mode of transport before that time are exempt if entered or withdrawn from the warehouse before 12:01 a.m. EDT on September 17, 2025.
WHAT EXCEPTIONS AND STACKING PROVISIONS APPLY TO THE TARIFS ON INDIA?
The 25% tariff is in addition to all other duties and charges, except where a higher Section 232 rate applies; in such cases, the higher duty prevails.
Exemptions include articles:
- Eligible under 50 U.S.C. 1702(b)
- Listed in Annex II of Executive Order 14257 of April 2, 2025
Transit goods in shipment before the effective date also qualify for exemption under the transit exception.
READ THE FACT SHEET: PRESIDENT DONALD J. TRUMP ADDRESSES THREATS TO THE UNITED STATES BY THE GOVERNMENT OF THE RUSSIAN FEDERATION
WILL ADDITIONAL COUNTRIES BE EVALUATED FOR SIMILAR ACTIONS?
The Secretary of Commerce, in coordination with the Secretaries of State and Treasury, will identify other countries directly or indirectly importing oil and related products from the Russian Federation. Upon such a finding, senior officials will recommend to the President whether to impose a similar 25% ad valorem duty on imports from those countries.
WHAT STEPS SHOULD U.S. IMPORTERS OF INDIA-ORIGIN GOODS TAKE NOW?
Importers should:
- Audit existing classifications to confirm that entries from India reflect the additional 25% duty
- Monitor shipments for transit timing to determine exemption eligibility
- Coordinate with customs brokers to verify stacking provisions and Annex II exclusions
By following these steps, U.S. importers can align their compliance processes with the new Executive Order and minimize potential disruptions to their supply networks.
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