On August 6, 2025, President Trump issued a new Executive Order under the International Emergency Economic Powers Act (IEEPA) imposing a 25% ad valorem tariff on all goods from India, in response to India’s continued purchases of Russian oil and petroleum products. This new measure—referred to as the IEEPA Russian Oil tariff—is separate from the IEEPA Reciprocal tariff that already applies to India under the July 31 Executive Order.
Effective Date and Stackable Tariffs
-
- Most-Favored Nation (MFN) duties
- Antidumping or countervailing duties (AD/CVD)
- Section 201 duties
- 25% IEEPA Reciprocal tariff
- 25% IEEPA Russian Oil tariff
Exemptions from the Russian Oil Tariff
The Executive Order and CBP guidance specify several important exemptions:
- In-Transit Shipments
Goods that are:- Loaded and in transit prior to August 27, and
- Entered before 12:01 a.m. ET on September 17, 2025,
are not subject to the 25% Russian Oil tariff.
- Section 232 Items
Goods already subject to Section 232 tariffs (e.g., steel, aluminum, autos, copper) are exempt from the Russian Oil tariff. - Annex II of EO 14257
Articles specifically listed in Annex II of the April 2, 2025 Executive Order (Reciprocal Tariffs) are exempt. - Humanitarian and Informational Goods
Exempt under 50 U.S.C. § 1702, including personal-use items, food, clothing, medicine, and informational materials. - Foreign-Trade Zones (FTZ)
- Goods entered into FTZs after August 27 must be in privileged foreign status.
- Goods eligible for FTZ admission under domestic status are exempt from the Russian Oil tariff.
Can You Claim Duty Drawback? Yes.
There is no prohibition on duty drawback for the IEEPA Russian Oil tariff, meaning eligible re-exports or destroyed goods can still qualify for refund claims. Importers should ensure that:
- The additional duty is separately tracked
- Proper HTS classifications and Chapter 99 headings are used
- FTZ or in-transit exemptions are clearly documented
This presents a significant cost recovery opportunity for companies re-exporting Indian-origin goods or participating in drawback-eligible programs.
Potential for Expansion
While this Executive Order targets India specifically, the administration has signaled that other countries importing Russian oil may be subject to similar tariffs in the future. Monitoring is ongoing.
J.M. Rodgers: Compliance Support and Drawback Filing
J.M. Rodgers is closely tracking implementation of the IEEPA Russian Oil tariff and related trade actions. Our team is available to:
- Confirm eligibility for duty drawback
- Ensure compliant entry procedures and HTSUS classifications
- File and manage refund claims under the IEEPA Russian Oil and Reciprocal tariffs
