New Tariffs on Products of India Start Aug 27

Updated 08/27/2025

On August 6, 2025, U.S. President Trump issued Executive Order, Addressing Threats to the United States by the Government of the Russian Federation. The new order places a 25% tariff on goods made in India starting August 27, 2025.

“I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil.” – U.S. President Trump

In the future, this tariff action may be modified in the case of retaliation of the tariffs, or if a country addresses the national emergency including the actions being taken against Ukraine by Russia. Also, additional countries may be added if US officials determine that another country is directly or indirectly importing Russian Federation oil.

Details

Effective Date

The 25% tariff rate [HTSUS 9903.01.84] shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 27, 2025.

The ad valorem duty applies in addition to the Reciprocal tariffs, as well as all other applicable duties (including antidumping and countervailing duties), taxes, fees, exactions, and charges, applicable to such imports.

Exemptions

• In-Transit goods that (1) were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States before 12:01 a.m. eastern daylight time August 27; and (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern daylight time on September 17, 2025. [HTSUS 9903.01.85]
• Section 232 paying value is exempt from these Russian oil-related tariffs. [HTSUS 9903.01.87]
  • Articles of iron or steel
  • Derivative articles of iron or steel
  • Articles of aluminum
  • Derivative articles of aluminum
  • Passenger vehicles and light trucks
  • Parts of passenger vehicles and light trucks
  • Semi-finished copper and intensive copper derivative products
• The ad valorem duty imposed shall not apply to articles that are excepted by 50 U.S.C. 1702(b).
  • Donations to relieve human suffering, i.e. food, medicine [HTSUS 9903.01.88]
  • Information materials, including but not limited to, publications, films, posters, photograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds. [HTSUS 9903.01.89]
• The ad valorem duty imposed shall not apply to articles that are set forth in Annex II (Current list from the Harmonized Tariff Schedule of the United States) to Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits), as amended. [HTSUS 9903.01.86]

Chapter 98

The additional duties imposed by heading 9903.01.84, HTSUS will not apply to goods for which entry is properly claimed under a provision of Chapter 98 of the HTSUS pursuant to applicable regulations issued by U.S. Customs and Border Protection (CBP), and whenever CBP agrees that entry under such a provision is appropriate, except for goods entered under heading 9802.00.80; and subheadings 9802.00.40, 9802.00.50, and 9802.00.60, HTSUS.  For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, HTSUS, the additional duties apply to the value of repairs, alterations, or processing performed (in India), as described in the applicable subheading.  For heading 9802.00.80, HTSUS, the additional duties apply to the value of the article assembled abroad (in India), less the cost or value of such products of the United States, as described.

Foreign Trade Zone

Articles that are products of India, subject to the ad valorem duty imposed in section 2 of Executive Order 14329, except those that are eligible for admission to a foreign trade zone under “domestic status” as defined in 19 C.F.R. § 146.43, and are admitted into a United States foreign trade zone on or after 12:01 a.m. eastern daylight time on August 27, 2025, must be admitted as “privileged foreign status” as defined in 19 C.F.R. § 146.41.  Such articles will be subject, upon entry for consumption, to the duties imposed by this order and the rates of duty related to the classification under the applicable HTSUS subheading in effect at the time of admission into the United States foreign trade zone.

Drawback

Drawback is available.

Definitions

“Russian Federation oil” means crude oil or petroleum products extracted, refined, or exported from the Russian Federation, regardless of the nationality of the entity involved in the production or sale of such crude oil or petroleum products.

“Indirectly importing” includes purchasing Russian Federation oil through intermediaries or third countries where the origin of the oil can reasonably be traced to Russia, as determined by the Secretary of Commerce in consultation with the Secretary of State and the Secretary of the Treasury.

References

CSMS # 66027027 – Guidance-Additional Duties on Imports from India

Have Questions? Contact your local NNR Representative.

We will continue to monitor this tariff action and provide updates as they become available.