President Trump signed an Executive Order (EO) this morning, August 6, imposing additional 25% tariffs on India starting in 21 days, on August 27, as forewarned yesterday in a Truth Social post. A Fact Sheet can be found here.

The EO also directs Commerce Secretary Howard Lutnick, Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, and other senior government officials to determine if other countries are indirectly or directly importing Russian oil. If affirmative determinations are made, the EO permits levying additional tariffs on those countries. Separately, the U.S. may also take additional actions if any country retaliates.

The new tariffs are in direct response to India’s continued purchase of Russian oil, which undermine the terms set forth by EO 14066 issued March 2022, Prohibiting Certain Imports and New Investments with Respect to Continued Russia Efforts to Undermine the Sovereignty and Territorial Integrity of Ukraine, as well as the national emergency declared by EO 14024 in April 2021, Blocking Property With Respect To Specified Harmful Foreign Activities of the Government of the Russian Federation. 

Stacking:

The additional 25% tariff will be stacked on top of India’s 25% IEEPA reciprocal tariff, set to go into effect tomorrow, August 7, plus any applicable MFN duties, taxes and other fees. 

Exemptions:

Products exempt from this action are those that are currently or in the future subject to Section 232 actions (see Annex II of EO 14257 for the list of potential future products).

In-Transit Clause:

Goods loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to August 27 and entered into consumption before September 17 will not be affected by this action.