On August 6, 2025, President Trump issued an Executive Order (E.O.) imposing a 25 percent ad valorem tariff on all imports from India in response to India’s continued imports of oil from the Russian Federation. Although E.O. 14245 of March 24, 2025, (Imposing Tariffs on Countries Importing Venezuelan Oil) previously authorized the imposition of tariffs on any country found to import, directly or indirectly, Venezuelan oil, this is the first instance where the administration has authorized and implemented what it has termed “secondary tariffs” against a specific country.
The 25 percent tariffs outlined in the E.O. are to be imposed on imports of articles of India entered for consumption after August 27, 2025. For goods subject to the “on the water” exception, tariffs will be imposed on those entered for consumption after September 17, 2025. This is in addition to any other applicable duties, including the reciprocal tariffs imposed by E.O. 14257, as amended.
Expansion of Secondary Tariffs to Other Countries
It is possible that these secondary tariffs will be imposed on other countries, as the E.O. requires the Departments of Commerce, State, and Treasury to determine whether any other countries are importing oil from Russia, directly or indirectly, and to advise whether similar tariff actions should be taken with respect to those countries. Notably, these secondary tariffs come after failed trade negotiations between India and the United States.
A country may become subject to this 25 percent tariff if it imports Russian oil, even if those imports are indirect. “Russian Federation oil” is defined in the E.O. as “crude oil or petroleum products extracted, refined, or exported from the Russian Federation, regardless of the nationality of the entity involved in the production or sale of such crude oil or petroleum products.” “Indirectly importing” is defined as “purchasing Russian Federation oil through intermediaries or third countries where the origin of the oil can reasonably be traced to Russia.” As such, countries that import crude oil or petroleum products traceable to Russia, even from non-Russian entities, potentially risk being subject to additional 25 percent tariffs on imports of their goods into the United States.
Implications of Secondary Tariffs
Secondary tariffs are akin to secondary sanctions, which are used to penalize entities in third countries that engage in transactions with parties in countries subject to U.S. sanctions. However, secondary sanctions generally restrict or prohibit those third country entities from accessing the U.S. financial system and/or the broader U.S. economy, whereas these secondary tariffs do not prohibit countries that import Russian oil from exporting goods to or otherwise trading with the United States. Instead, they impose an additional tariff on goods from such countries. The application of secondary tariffs thus targets specific behavior related to U.S. foreign policy and national security goals without the imposition of sanctions.
These 25 percent tariffs, like those in E.O. 14245, were issued pursuant to the International Emergency Economic Powers Act (IEEPA). They are intended to address the national emergency described in E.O. 14066 of March 8, 2022, (Prohibiting Certain Imports and New Investments With Respect to Continued Russian Federation Efforts To Undermine the Sovereignty and Territorial Integrity of Ukraine) by deterring purchases of Russian oil that in turn support Russia’s war machine and its actions against Ukraine.
The extent to which these, or future, secondary tariffs will be implemented remains to be seen. The Government of India has stated that it will “take all actions necessary to protect its national interests.” The E.O. notes that if there is any retaliation in response to actions taken in furtherance of the E.O., the order may be modified “to ensure the efficacy of the actions herein ordered.”
The E.O. marks the first application of secondary tariffs under IEEPA, imposing additional duties on imports from countries found to have engaged in specified trade with a third country, the Russian Federation. This use of secondary tariffs reflects an expansion of national emergency authorities to address third-country conduct through trade measures.
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Cassidy Levy Kent’s attorneys, compliance professionals, economists, and licensed customs brokers have experience assisting clients navigating tariff changes, export controls, and sanctions issues. We expect further developments in this space and will continue to provide updates. Please contact us with any questions.