Washington: US President Donald Trump on Wednesday signed an order imposing an added 25 percent tariff on Indian goods, citing New Delhi’s ongoing purchases of oil from Russia. The new tariff, announced formally through an executive order, will take effect 21 days from the date of signing (August 27).

This measure comes just days after Trump had earlier declared a 25 percent tariff on India on July 30. The two duties combined will result in a total import tax of 50 percent on a broad range of Indian goods.

Targeting Russian revenue sources

Trump stated that India is "currently directly or indirectly importing Russian Federation oil", which he claims serves as a significant revenue stream for Moscow’s ongoing war in Ukraine.

The executive order specifies that Indian goods entering the US for consumption—or withdrawn from warehouses for consumption—on or after 12:01 a.m. Eastern Daylight Time, 21 days after the order date, will be subjected to the new tariff.

Limited exemptions and stacking clauses

The tariff structure retains certain exemptions. Items already subject to separate duties under section-specific actions—such as steel, aluminium and pharmaceuticals—remain outside the scope of this order.

Additionally, the 25 percent duty outlined in the new order will be applied over and above any existing taxes or charges, unless the goods fall under Section 232 of the Trade Expansion Act of 1962, which would nullify the additional tariff.

Goods already in transit before the effective date, and entering the US before 12:01 a.m. on September 17, 2025, will not be subject to the new duty.

India yet to respond

As of now, the Indian government has not issued an official statement in response to Trump’s tariff escalation.