U.S. Slaps 25% Tariff on Indian Imports Over Russian Oil Links

U.S. Customs and Border Protection has begun collecting a 25% duty on most Indian goods, following Executive Order 14329, which targets countries tied to Russian oil.

The Department of Homeland Security announced that U.S. Customs and Border Protection (CBP) has implemented additional duties on imports from India in compliance with President Trump’s Executive Order 14329 of August 6, 2025. The measure imposes a 25 percent ad valorem tariff on most products of India, citing India’s role in indirectly importing Russian oil.

Executive Order 14329 builds on prior sanctions and restrictions targeting the Russian Federation following its aggression against Ukraine. Earlier orders—most notably Executive Orders 14024 (April 2021) and 14066 (March 2022)—established a national emergency framework prohibiting imports of Russian-origin crude oil, petroleum, and related products.

After further consultations with senior officials, the President determined that the Russian Federation’s activities continue to pose an “unusual and extraordinary threat” to U.S. national security and foreign policy. In response, the White House extended pressure to India, citing evidence that Indian imports have indirectly supported the Russian energy sector.

China Gets a Pass

China is not subject to the same penalties under Executive Order 14329. That order specifically targets products of India connected to indirect imports of Russian oil. No similar additional ad valorem duties have been imposed on Chinese imports under that directive.

Implementation

CBP has modified the Harmonized Tariff Schedule of the United States (HTSUS) to establish new tariff provisions under Chapter 99. Key measures include:

HTSUS 9903.01.84: A 25% duty on most products of Indian origin, effective for entries on or after August 27, 2025.

Transit Exception (9903.01.85): Goods shipped before the effective date and entered by September 17, 2025, may avoid the additional duty if importers certify eligibility.

Exemptions: Certain humanitarian donations (9903.01.88) and informational materials (9903.01.89) are excluded from the tariff increase.

Special carveouts: Iron, steel, aluminum, passenger vehicles, and copper derivatives are addressed through cross-referenced tariff provisions and remain subject to pre-existing measures under other executive authorities.

Products covered by the new heading are subject to all existing duties, taxes, and trade remedy measures, including antidumping and countervailing duties. Goods entering U.S. foreign trade zones after August 27, 2025, must be admitted under “privileged foreign status” to ensure tariff collection upon consumption entry.

The new action also interacts with Executive Order 14257 (April 2025), which created a reciprocal tariff framework targeting countries contributing to U.S. trade deficits. While certain Indian goods listed in Annex II of that order are exempt from the new 25% duty, all other qualifying goods are subject to cumulative tariffs under both orders.

Implementation of Additional Duties on Products of India