What’s new:
On August 6, 2025, President Trump signed Executive Order 14329, launching a new tariff measure under IEEPA (International Emergency Economic Powers Act). This order places an extra 25% ad valorem duty on imports from India, due to India’s direct or indirect imports of Russian oil.
When it takes effect:
- The 25% tariff begins at 12:01 a.m. EDT on August 27, 2025.
- There is a short in-transit exemption window: goods loaded before August 27 and entered by September 17, 2025 may escape the tariff under certain conditions.
How it works:
- The new duty is in addition to all other applicable tariffs (MFN, antidumping/countervailing, existing IEEPA reciprocal tariffs).
- Under the HTSUS, a new heading 9903.01.84 is used for this additional duty.
- Exemptions exist for goods under 9903.01.85–9903.01.89 (e.g. in-transit, donated medical supplies, items under reciprocal tariff exceptions) and for goods subject to Section 232 actions.
Why It Matters
- Cost increase: Importers of goods from India will now pay an additional 25%, stacking on top of existing tariffs.
- Wide impact: The tariff applies broadly to Indian products, unless they qualify for one of the narrow exemptions.
- Short window for planning: If goods are already en route (loaded before August 27) and enter by September 17, they might be spared.
- Supply chain pressure: Indian exporters and U.S. buyers must revisit cost structures, sourcing, pricing, and contractual terms.
Key Dates at a Glance
| Date | Event |
|---|---|
| August 6, 2025 | EO 14329 signed |
| August 27, 2025 (12:01 a.m. EDT) | Additional 25% tariff on Indian imports becomes effective |
| September 17, 2025 (12:01 a.m. EDT) | Cutoff for in-transit exemption entries |
What Importers Should Do Now
- Review contracts with Indian suppliers to confirm exposure to the new 25% tariff.
- Check shipping timelines — goods loaded before August 27 and entered by September 17 may qualify for exemption.
- Classify correctly using HTS heading 9903.01.84 where applicable.
- Identify exemptions:
- Goods under 9903.01.85–.89
- Items under Section 232 tariff rules
- Products listed in Annex II of EO 14257
- Reprice or renegotiate contracts to account for added cost.
- Stay tuned for updates — EO 14329 allows future modifications.
📌 Bottom line: Importers of Indian goods face a new 25% IEEPA tariff from August 27, 2025. Only in-transit shipments entered by September 17, 2025 may qualify for relief.
