Source: Supply Chain Dive
Date: 31st July 2025

The new tariff, effective August 27, will stack on existing duties, citing India’s continued oil trade with Russia as justification.

The United States has announced a second round of tariffs on Indian imports, adding a 25% duty that will take effect on August 27. This surcharge comes on top of a separate 25% reciprocal tariff already set to begin this week, raising the total tariff rate to 50% on affected goods.

According to the executive order, the extra duty applies to goods entered for consumption after the effective date, with limited exceptions for shipments already en route before August 27.

The administration justified the new tariff by citing India’s ongoing imports of oil from the Russian Federation. Officials claim such actions indirectly support global instability and conflict.

The order empowers further action against any country found to be sourcing oil from Russia, including the imposition of additional duties based on recommendations from key U.S. cabinet officials. While some countries have negotiated trade frameworks with the U.S. to manage tariff exposure, discussions with India have yet to yield a concrete agreement.

Indian authorities criticised the move, calling it unjustified and an overreach. They defended their energy trade practices as essential for ensuring stable and affordable energy prices for domestic consumers.

India also emphasised its right to protect its national interests and economic security. With India accounting for 2.4% of U.S. trade and roughly $87 billion in goods exported to the U.S. last year, the escalating trade measures could have notable implications for supply chains and diplomatic relations.