According to an Executive Order issued yesterday morning, the U.S. is imposing an additional 25% on products from India, effective August 27. The tariff is in response to India's continued import of Russian oil and Russia's ongoing military incursion in Ukraine.
Further, the following scope and stacking order applies:
- The additional tariff does not apply to goods that (1) were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the U.S. before 12:01 a.m. EDT August 27, 2025; and (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. EDT on September 17, 2025.
- The additional tariff does not apply to goods subject to existing or future actions under section 232 of the Trade Expansion Act of 1962, which would currently include steel, aluminum, automobiles and automobile parts, and copper.
- The additional tariff does not apply to goods that are excepted by 50 U.S.C. 1702(b), i.e. any postal, telegraphic, telephonic, or other personal communication; donations of food, clothing and medicine intended to relieve human suffering; merely informational materials; any transactions ordinarily incident to travel to or from any country, including importation of accompanied baggage for personal use.
- The additional tariff does not apply to goods set forth in Annex II to Executive Order 14257 of April 2, 2025, as amended (found at the bottom of the EO).
- The 25% imposed in Executive Order 14257 of April 2, 2025, as amended, applies in addition to the new 25%, for a total of 50% tariff above the Most Favored Nation (MFN) rate due.
- Goods subject to the additional tariff and admitted into a foreign trade zone on or after 12:01 a.m. EDT August 27 must be admitted under "privileged foreign status" (per 12 CFR 146.41), unless the goods qualify for "domestic status" (per 19 CFR 146.43).
Braumiller Law Group PLLC will continue to monitor negotiation progress and provide updates as needed.
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