The U.S. will levy an additional 25% tariff on imports from India starting Aug. 27, according to an executive order from President Donald Trump published Wednesday.
The duty will stack on top of a 25% tariff for India-based imports Trump announced last week as part of a slew of country-specific reciprocal levies for more than 60 trading partners. Those duties are set to take effect Thursday.
The additional tariff on imports from India will apply for goods entered for consumption or withdrawn from a warehouse for consumption 21 days after the order's date. An exception is in place for products on their final mode of transit before U.S. entry before Aug. 27, in which case the tariff will begin applying Sept. 17.
The order said the additional tariff "is necessary and appropriate" while highlighting that India is "directly or indirectly importing Russian Federation oil." Trump telegraphed the new tariff and it's reasoning in an interview on CNBC's "Squawk Box" Tuesday.
"So we settled on 25%, but I think I’m going to raise that very substantially over the next 24 hours, because they’re buying Russian oil, they’re fueling the war machine," Trump said. "And if they’re going to do that, then I’m not going to be happy."
The order also said if the Secretary of Commerce finds a country is importing oil directly or indirectly from Russia, White House cabinet officials will recommend whether and to what extent Trump should take action. That includes potentially imposing "an additional ad valorem rate of duty of 25 percent on imports of articles of that country."
India's imports of oil from Russia are intended "to ensure predictable and affordable energy costs" for consumers in the country, a spokesperson for India's Ministry of External Affairs said Monday.
"In this background, the targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security," the spokesperson said.
While officials from the U.S. and India have held trade talks and floated the possibility of a deal being reached last month, those discussions haven't yet resulted in a concrete agreement. Several U.S. trading partners, including the European Union and Japan, have reached deals and deal frameworks with the Trump administration addressing tariffs and other trade matters.
The U.S. imported around $87 billion in goods from India in 2024, while exporting about $42 billion, covering 2.4% of U.S. trade, according to U.S. International Trade Commission data.
