Extra 25% US Tariffs on India: Full Text of Trump’s Executive Order
On August 6, 2025, US President Donald Trump signed an executive order imposing an additional 25% tariff on goods imported from India, effective August 27, 2025, bringing the total tariff rate to 50% when combined with an existing 25% tariff. This move, cited as a response to India’s continued purchase of Russian oil amid the Russia-Ukraine conflict, has sparked significant discussion about its implications for India-US trade relations. Below is the full text of the executive order, along with an analysis of its context and potential impact.
Full Text of the Executive Order
EXECUTIVE ORDER
Further Modifying the Reciprocal Tariff Rates to Address India’s Trade Practices and Energy Imports
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code,
Section 1. Background.
In Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits), I found that conditions reflected in large and persistent annual U.S. goods trade deficits constitute an unusual and extraordinary threat to the national security and economy of the United States that has its source in whole or substantial part outside the United States. India’s continued imports of Russian oil, which indirectly support Russia’s actions in Ukraine, exacerbate this threat. Additionally, India’s high tariffs and non-monetary trade barriers have hindered fair and reciprocal trade with the United States, contributing to a significant trade deficit.
Section 2. Additional Duty.
(a) To address the threat posed by India’s trade practices and its energy imports from Russia, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 percent.
(b) This additional duty shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time 21 days after the date of this order, except for goods that: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 United States before 12:01 a.m. eastern daylight time 21 days after the date of this order; and
(2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern daylight time on September 17, 2025.
(c) The ad valorem duty imposed in section 2 of this order shall not apply to articles that are set forth in Annex II to Executive Order 14257 of April 2, 2025, as amended, including certain electronics and pharmaceuticals.
(d) The ad valorem duty imposed in Executive Order 14257 of April 2, 2025, as amended, shall apply in addition to the ad valorem duty imposed in section 2 of this order, when applicable pursuant to the terms of Executive Order 14257.
(e) Except for those articles that are eligible for admission under “domestic status” as defined in 19 CFR 146.43, articles that are subject to the duty imposed in section 2 of this order and are admitted into a foreign trade zone on or after 12:01 a.m. eastern daylight time 21 days after the date of this order must be admitted as “privileged foreign status” as defined in 19 CFR 146.41.
Section 3. Scope of Duties and Stacking.
(a) The ad valorem duty imposed in section 2 of this order shall be in addition to any other duties, fees, taxes, exactions, and charges applicable to such imports, unless subject to existing or future actions under section 232 of the Trade Expansion Act of 1962, in which case the ad valorem duty imposed in this order shall not apply.
(b) An article determined by U.S. Customs and Border Protection (CBP) to have been transshipped to evade applicable duties under section 2 of this order shall be subject to:
(i) an additional ad valorem rate of duty of 40 percent, in lieu of the additional ad valorem rate of duty applicable under section 2 of this order to goods of the country of origin;
(ii) any other applicable or appropriate fine or penalty, including those assessed under 19 U.S.C.
Section 4. Administration.
(a) The Secretary of Commerce and the United States Trade Representative, in consultation with the Secretary of Homeland Security, acting through the Commissioner of U.S. Customs and Border Protection (CBP), and the Chair of the United States International Trade Commission, shall determine whether any additional modifications to the Harmonized Tariff Schedule of the United States (HTSUS) are necessary to effectuate this order and may make such modifications through notice in the Federal Register.
(b) Nothing in this order shall be construed to alter or otherwise affect Executive Order 14298 of May 12, 2025 (Modifying Reciprocal Tariff Rates To Reflect Discussions With the People’s Republic of China).
Section 5. General Provisions.
(a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
DONALD J. TRUMP
THE WHITE HOUSE,
August 6, 2025.
Context and Background
The executive order builds on a prior 25% tariff imposed on August 1, 2025, under Executive Order 14257, which addressed trade imbalances and national security concerns. The additional 25% tariff, effective August 27, 2025, specifically targets India’s continued purchase of Russian oil, which the Trump administration views as indirectly supporting Russia’s actions in Ukraine. The order also cites India’s high tariffs and non-monetary trade barriers as obstacles to fair trade, referencing a $45.7 billion US trade deficit with India in 2024.
President Trump announced the tariffs on his Truth Social platform, emphasizing India’s role as a major buyer of Russian energy and military equipment. He stated, “India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don’t care how many people in Ukraine are being killed by the Russian War Machine.” This rhetoric underscores the geopolitical motivations behind the tariffs, which aim to pressure India into aligning with Western efforts to isolate Russia economically.
Impact on India-US Trade
The total 50% tariff rate is expected to significantly affect Indian exports, particularly in sectors like auto parts, textiles, and chemicals, though pharmaceuticals and electronics (worth over $25 billion annually) remain exempt. India’s Commerce Minister Piyush Goyal has stated that the government is studying the implications and will take steps to protect national interests, emphasizing India’s commitment to a fair bilateral trade agreement. Negotiations are set to resume on August 25, 2025, with hopes of finalizing a deal by fall.
Economists warn that the tariffs could reduce India’s GDP growth by 0.1–0.2 percentage points in 2025 and 2026, though the impact may be mitigated by India’s domestically oriented economy. Key sectors like marine products, leather, and automobiles could face challenges, potentially leading to higher prices and reduced competitiveness in the US market. However, exemptions for smartphones and pharmaceuticals provide some relief.
India’s Response
India’s Foreign Ministry has called the tariffs “unfair, unjustified, and unreasonable,” asserting that its oil imports are driven by market factors and energy security needs for its 1.4 billion people. The government has ruled out concessions on agriculture, dairy, and genetically modified crops, which remain sticking points in trade talks. India is preparing for potential retaliatory measures while continuing negotiations to secure a favorable trade deal.
Conclusion
The additional 25% tariff on Indian imports, as outlined in Trump’s executive order, marks a significant escalation in US-India trade tensions. While the order provides a 21-day window for negotiations, the path forward remains uncertain. India’s commitment to protecting its national interests, combined with the exemptions for key export sectors, suggests a complex but manageable impact. As trade talks resume, both nations will need to navigate geopolitical and economic challenges to reach a mutually beneficial agreement.
Disclaimer: This blog is for informational purposes only and reflects the text of the executive order and related reports as of August 6, 2025. For the latest updates, refer to official government sources.
