What Trump’s executive order actually says about India, Russia, and the 25% tariff hit

U.S. President Donald Trump has signed a sweeping new Executive Order imposing an additional 25% tariff on all Indian imports, citing India’s ongoing oil trade with Russia as a threat to U.S. national security. The order builds on earlier actions tied to the Ukraine conflict and invokes laws like the International Emergency Economic Powers Act and the Trade Act of 1974.

Why was the order issued?
The U.S. government argues that India’s continued direct and indirect imports of Russian oil undermine sanctions placed on Russia following its invasion of Ukraine. By targeting Indian goods, Trump’s administration aims to pressure New Delhi to scale back its energy ties with Moscow.

What does the order impose?
All Indian imports will face a 25% ad valorem tariff on top of any existing duties. The tariff will take effect 21 days after August 6, 2025—that is, from August 27, 2025. However, goods already in transit before that date will be exempt, provided they arrive in the U.S. before September 17, 2025.

Are there any exemptions?
Yes. The tariff does not apply to:

• Items protected by U.S. legal exemptions under 50 U.S.C. 1702(b)
• Articles listed under Annex II of Executive Order 14257 (April 2, 2025)
• Goods covered under Section 232 of the Trade Expansion Act
• Items entering U.S. Foreign Trade Zones under “domestic status” rules

Can the order be changed?

• Yes. The president may modify the tariff level or its application based on:
• Retaliation by foreign governments
• Diplomatic or policy shifts
• Recommendations from U.S. officials or changes in Russian behavior

How is 'importing Russian oil' defined?
The order defines it broadly to include both direct imports and indirect purchases via intermediaries or third countries. The determination of what qualifies as Russian oil is left to the U.S. Secretary of Commerce, in consultation with other agencies.

Will other countries face similar tariffs?
Potentially. The order authorizes the Secretary of Commerce to monitor and report on other nations importing Russian oil. Based on these findings, the president may impose similar tariffs on those countries.

What does this mean for India?
The new tariff comes on top of existing trade duties and could significantly disrupt Indian exports to the U.S., especially in sectors like IT services, pharmaceuticals, auto components, textiles, and engineering goods. The move also raises the risk of a broader trade conflict, as India may retaliate with its own tariffs.

In effect, the order gives the Trump administration wide-ranging power to escalate economic pressure on India—and any other country seen as undercutting U.S. sanctions against Russia.