In a significant escalation of trade tensions, the United States has implemented a new executive order imposing a 25% tariff on imports from India, a decision rooted in India’s ongoing purchase of oil from Russia. This move highlights the US government’s stance on the geopolitical ramifications of alliances with Russia amid the continued conflict in Ukraine.
The executive order states that the US has determined that India is “currently directly or indirectly importing Russian Federation oil.” Consequently, all goods imported from India into the United States customs territory will incur an additional ad valorem duty of 25%.
This tariff is set to take effect in 21 days from the order’s signing, applying to any goods that are either entered for consumption or withdrawn from warehouses for consumption after 12:01 a.m. Eastern Daylight Time. However, there are two notable exemptions: any goods that were loaded onto a vessel at the port of loading and were already in transit prior to the effective date, as well as items entered for consumption before the specified time on September 17, 2025.
While the executive order reflects President Trump’s authority in trade matters, it lacks clarity regarding how long these tariffs will remain in place or under what conditions they may be lifted. This new measure comes as part of broader US efforts to dissuade countries from maintaining economic ties with Russia, following its invasion of Ukraine.
The implications of this tariff on US-India trade could be substantial, affecting various sectors including pharmaceuticals, textiles, and information technology services. Industry experts anticipate that this development may ignite further diplomatic discussions as both nations navigate the complexities of trade relations amidst global geopolitical challenges.
