Trump Imposes Secondary Tariffs on India

President Trump issued a new imposing anadditional 25% tariffon U.S. imports from India, in response to Indias continued purchase of Russian oil.
The background: In an EO issued March 8, 2022, shortly after Russia invaded Ukraine, the Biden administration prohibited U.S. imports of certain products from Russia, including crude oil, petroleum and related products.
- This new action cites that EO in imposing an additional ad valorem duty on imports from India, which is directly or indirectly importing Russian Federation oil.
Tariff stacking:The secondary tariffs arein addition to the 25% modified International Emergency Economic Powers Act reciprocal tariffson India.
Timing:Secondary tariffs will take effect 21 days after the date of the EO,on Aug. 27.
- The EO includes an on the water exception for products loaded and in transit on the final mode of transit prior to that date and that enter the U.S. by Sept. 17.
Other details:The secondary tariff will not apply to goods subject to existing or future actions under Section 232.
- It will also not apply if the good is identified into EO 14257 of April 2, 2025.
Further action? The EO suggests other countries purchasing Russian oil may become subject to similar secondary tariffs.
- It directs the Department of Commerce to coordinate with other agencies to determine whether any other country isdirectly or indirectlyimporting Russian Federation oil, and recommend whether to impose an additional 25% tariff on that country. Indirect importation is described as through intermediaries or third countries.
- Top importers of Russian oilwhich the EO defines as both crude oil and petroleum products extracted, refined or exported from the Russian Federationinclude China, T羹rkiye, Brazil and the European Union.
India responds: The government of Indiain an official statement:It is extremely unfortunate that the U.S. should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.