U.S. President Donald Trump signed an Executive Order today imposing a 25% tariff on imports from India, citing the country’s continued purchase of Russian oil. The order, effective 21 days from signing, represents a significant escalation in U.S. efforts to curtail Russia’s oil revenue amid its ongoing war in Ukraine.
“To deal with the national emergency described in Executive Order 14066, I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil,” states the Executive Order.
The tariff will apply to goods entering the United States beginning 21 days after today’s signing, with limited exceptions for shipments already in transit that enter before September 17, 2025.
The order defines “Russian Federation oil” as “crude oil or petroleum products extracted, refined, or exported from the Russian Federation, regardless of the nationality of the entity involved in the production or sale of such crude oil or petroleum products.” It also addresses “indirectly importing” through intermediaries or third countries “where the origin of the oil can reasonably be traced to Russia.”
The order also establishes a framework for monitoring other countries potentially importing Russian oil and authorizes similar tariffs on their imports if deemed necessary.
This action could significantly impact maritime trade routes between India and the United States, potentially affecting freight rates, vessel deployments, and cargo volumes. Stakeholders should prepare for potential supply chain disruptions and possible retaliatory measures from India that could further complicate international shipping.
The full implementation timeline and potential exemptions will likely be detailed in the future by the U.S. Customs and Border Protection.