Compliance Alert: India Imports Now Face 50% Tariffs

India Imports Now Face 50% Tariffs

On August 27, 2025, at 12:01 a.m. EDT, a new trade measure from the White House takes effect: imports from India will now face a total tariff of 50% when entering the United States.

This includes:

  • An additional 25% tariff announced on August 26, 2025, in response to India’s continued importation and resale of Russian Federation oil.
  • The existing 25% tariff already applied under Executive Order 14257 (April 2025).
  • The combined tariff means most Indian-origin goods entering the U.S. will be assessed 50% duties, unless exempted under Annex II of EO 14257.

Why India Was Targeted

According to the White House, this action is a direct response to India’s role in purchasing Russian Federation oil and reselling it on the open market. Officials argue that this undermines U.S. efforts to counter Russia’s activities in Ukraine.

While India is the first to face these additional measures, the Secretary of Commerce, Secretary of State, and other agencies are reviewing whether other countries engaged in similar activities should also be subject to tariffs.

What Importers Should Expect

50% Tariff Rate: Effective immediately, most goods imported from India are subject to a combined 50% tariff.

Annex II Exemptions. Limited categories listed in Annex II of EO 14257 remain excluded.

Possible Expansion. Other countries importing Russian oil could face similar tariffs in the coming weeks.

Higher Landed Costs. U.S. importers relying on Indian suppliers must prepare for significant cost increases.

Risks for Supply Chains

Price Increases

A 50% tariff dramatically impacts landed costs, margins, and competitiveness.

Disrupted Supplier Contracts

Indian sourcing agreements may need renegotiation or replacement.

Regulatory Uncertainty

With the possibility of more countries being added, global supply chains could face additional volatility.

How GLC Can Support You

At Global Logistical Connections (GLC), we work with importers to manage compliance risks and adapt to shifting trade policies. Our services include:

  • Customs Brokerage: Accurate classification, duty mitigation strategies, and compliant filings.
  • Supply Chain Diversification: Identifying alternative sourcing options outside India and other at-risk markets.
  • Freight Forwarding: Secure, cost-effective transportation with global coverage.
  • Regulatory Guidance: Real-time monitoring of White House and CBP announcements to keep your operations informed.

The India 50% tariff represents one of the most significant U.S. trade policy shifts of 2025. Importers relying on India must act quickly to evaluate their sourcing strategies, cost structures, and compliance processes.

For guidance tailored to your business, contact our compliance team at [email protected]  or visit glc-inc.com.