On August 6, President Trump issued a new Executive Order under the International Emergency Economic Powers Act (IEEPA) in response to actions taken by the Government of the Russian Federation against Ukraine that impose threats to national security and foreign policy of the U.S. To deal with the national emergency, a new 25% tariff has been imposed on imports from India, citing India’s continued import of Russian oil.
The new tariff of 25% is effective on goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT August 27. The tariff will be added on top of the existing 25% reciprocal tariff under IEEPA, resulting in a total IEEPA tariff of 50% on Indian imports.
The Order leaves room for adjustments. Tariffs may increase if India retaliates or decrease if India makes changes to address the concerns raised. As well, the Order allows for the similar action if any other country is directly or indirectly importing Russian Federation oil. Mohawk Global Trade Advisors is keeping a close eye on the changing tariff landscape. We’re here to help you navigate country-specific impacts, manage risk, and stay compliant. Reach out to us for strategic guidance tailored to your supply chain.