Hello Customers, Colleagues, and Friends,
We are writing to inform you of a new Executive Order issued by the Trump Administration that will impose additional tariffs on imports from India in response to the country’s continued imports of Russian oil.
New Additional 25% Tariff on India-Origin Goods
Effective August 27, 2025, most goods with a country of origin of India will be subject to an additional 25% ad valorem duty. The 25% reciprocal tariff that went into effect August 7th, 2025 will be combined with this future 25% tariff totaling 50% tariff rate on Indian goods.
- Reason for Action: The U.S. government cited India’s ongoing purchases of Russian oil as the basis for these measures.
- Future Scope: The Commerce, Treasury, and State Departments will review trade data to determine whether other countries are importing Russian oil and may recommend similar tariff actions.
Stacking with Existing Tariffs:
This new 25% tariff will stack on top of the existing 25% reciprocal tariff on India-origin goods announced August 1, 2025, set to take effect August 7, 2025.
- If goods are already subject to Section 232 tariffs, the new 25% will not apply.
- If goods are exempt from reciprocal tariffs, the new 25% will also not apply.
In-Transit Exemption
Goods will be exempt from the new tariff if:
- They are loaded onto a vessel at the port of loading before 12:01 a.m. ET on August 27, 2025, and
- They enter the U.S. before September 17, 2025.
What This Means for You
- Review your supply chain for India-origin products that may be subject to both the reciprocal tariffs (Aug. 7) and the new 25% Russian oil-related tariff (Aug. 27).
- Confirm tariff classification to determine if Section 232 or other exemptions apply.
- Consider shipment timing to take advantage of the in-transit exemption.
Further updates expected. We will continue to monitor developments and provide timely updates as additional information becomes available. Please reach out to K&H if you have any questions regarding the recent tariff changes.
Sincerely, Your friends at Krenz and Hannan International