25% Secondary Tariffs on Most Indian Exports Begin Aug. 27
On Aug. 27, Indian goods that are currently subject to reciprocal tariffs will be tariffed at an additional 25%, on top of the 25% reciprocal tariff set to take effect Aug. 7, the White House announced.
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In a fact sheet explaining the Aug. 6 executive order, the administration said that India's importation of oil from Russia "undermines U.S. efforts to counter Russia’s harmful activities," and Russia's "actions in Ukraine pose an ongoing threat to U.S. national security and foreign policy, necessitating stronger measures to address the national emergency."
"By imposing a 25% tariff, President Trump aims to deter countries from supporting the Russian Federation’s economy through oil imports and impose serious economic consequences on the Russian Federation for its ongoing Aggressions," the fact sheet said.
These new 25% tariffs, which will be added to 25% reciprocal tariffs that begin Aug. 7, are built on a national emergency declared by President Joe Biden in 2021, and expanded with an import ban on some Russian goods in March 2022.
Goods that are subject to "existing or future" Section 232 tariffs won’t face the additional tariff, nor will other goods already exempt from reciprocal tariffs. An in-transit exemption applies to goods loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to 12:01 a.m. ET on Aug. 27 and entered before Sept. 17.
The order says the commerce secretary, treasury secretary and secretary of state "shall determine whether any other country is directly or indirectly importing Russian Federation oil," and "shall recommend whether and to what extent I should take action as to that country, including whether I should impose an additional ad valorem rate of duty of 25 percent on imports."
If Russia or India or any future countries affected by additional 25% duties "take significant steps to address the [Ukraine invasion] national emergency ... and align sufficiently with the United States on national security, foreign policy, and economic matters, I may further modify this order."
It also says that the secretary of state, along with the treasury secretary, commerce secretary, the Department of Homeland Security secretary, the U.S. trade representative, national security adviser, and White House officials Kevin Hassett and Peter Navarro "shall recommend to me additional action, if necessary, if the actions in this order are not effective in resolving" the war in Ukraine, "or another foreign country retaliate[s] against the United States in response to the actions taken in this order ... ."
India responded to the order by saying, "The United States has in recent days targeted India’s oil imports from Russia.
"We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India.
"It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.
"We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests."
Mint, a business newspaper in India, said the Indian government expects its more than $86 billion in exports to the U.S. to fall by at least 40%.