NEW DELHI (Diya TV) — Indian products entering the United States that are linked to Russian oil will face a 25% additional tariff, according to a draft federal notification from U.S. Secretary of Homeland Security Kristi Noem. The notification is set for publication on Aug. 27, 2025.
The tariff is part of President Donald Trump’s Executive Order 14329, issued on Aug. 6, 2025. The order targets products connected to Russian oil to counter threats posed by the Russian government amid its ongoing actions in Ukraine. It builds on previous sanctions under Executive Orders 14066 and 14024, which restricted imports of Russian crude oil, petroleum products, and related commodities.
The U.S. Department of Homeland Security, through Customs and Border Protection, issued the notice stating the new tariffs will take effect at 12:01 a.m. Eastern Standard Time on Aug. 27, 2025, corresponding to 9:30 a.m. Indian Standard Time.
The notice says the additional tariff addresses risks posed by the Russian Federation to U.S. national security. Executive Order 14066, signed in March 2022, prohibited imports of certain Russian products, including crude oil and petroleum products. On Aug. 6, 2025, Trump determined the national emergency declared in 2022 continues. He concluded that Russian actions in Ukraine remain a threat to U.S. national security and foreign policy.
The executive order directs a 25% ad valorem duty on Indian products that directly or indirectly use Russian oil.
The United States is India’s largest export market and third-largest trading partner, with a total trade volume of $130 billion. Only the Gulf Cooperation Council, with $161 billion, and the European Union, with $135 billion, exceed this.
India is already subject to a 25% tariff on exports to the U.S. This new levy raises the total tariff to 50% for goods linked to Russian oil.
Indian Foreign Secretary Vikram Misri told reporters that India and the U.S. continue to consult on the issue.
The Federation of Indian Export Organisations (FIEO) warned that the new tariffs could severely disrupt exports to the U.S., India’s largest market. Around 55% of India’s shipments to America, valued at $47 to $48 billion, now face pricing disadvantages of 30% to 35%.
Textiles and apparel makers in Tiruppur, Noida, and Surat have already halted production due to rising costs. The seafood industry is experiencing stockpile losses, disrupted supply chains, and distress among farmers.
FIEO President S.C. Ralhan urged the Indian government to provide immediate support. He recommended interest subvention schemes and export credit facilities for small and medium-sized enterprises. He emphasized that cheap and easily available credit could help Indian exporters remain competitive.
Some categories of Indian goods are not affected by the new tariff, but authorities have not yet specified which products are exempt. Businesses are closely watching for further clarification from U.S. officials.
The U.S. said these tariffs aim to reduce India’s reliance on Russian oil and pressure Moscow amid the ongoing conflict in Ukraine. While the move strains trade relations, both countries continue diplomatic consultations.
Experts say that Indian exporters will need to quickly adapt their supply chains and explore alternative markets to reduce the impact. The coming months could see shifts in global trade patterns as Indian companies look to stay competitive.
