The North News
New Delhi, August 26
The United States has announced a new 25% tariff on Indian goods, accusing New Delhi of indirectly importing Russian oil despite sanctions. The move, due to take effect on 27 August, effectively doubles the total duties to around 50% for a wide range of Indian products.
The decision was formalised in an executive order signed by US President Donald Trump on August 6 . It builds on a series of restrictions first imposed in 2022 after Russia’s invasion of Ukraine, which targeted Moscow’s crude oil, petroleum and refined fuel exports.
Washington said fresh assessments show Russia continues to pose an “unusual and extraordinary threat” to US national security and foreign policy. Officials concluded that some Indian imports are connected to Russian oil supplies, prompting the additional duty. The executive order sets an ad valorem duty of 25% on goods from India that are directly or indirectly linked to Russian Federation oil. These charges will apply alongside all existing customs duties, taxes and fees.
Certain Indian products covered under an earlier reciprocal tariff order in April 2025 will be exempt, though they must still be classified under new customs codes. All other affected imports will face the new levy on top of previously applied tariffs.
Goods entering US foreign trade zones after August 27 must also be declared under “privileged foreign status” to ensure compliance with the new rules. Homeland Security Secretary Kristi Noem has issued the enforcement notice in this regard, saying the step was necessary to curb indirect Russian oil trade and to sustain pressure on Moscow over its actions in Ukraine.
